Use the Information for the Question(s)below

question 99

Multiple Choice

Use the information for the question(s) below.
-The above table shows the yields to maturity on a number of one-year, zero-coupon securities. What is the price per $100 of the face value of a one-year, zero-coupon corporate bond with a BBB rating?

• A)$93.54
• B)$94.16
• C)$94.87
• D)$92.21

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Definitions:

Par Value

The face value of a bond or stock as stated by the issuing company, unrelated to its market value.

Transaction Fee

A charge levied for processing a payment or financial transaction.

Shares

Units of ownership interest in a corporation or financial asset that provide for an equal distribution in any profits, if any are declared, in the form of dividends.

Rate of Yield

The percentage of return on an investment, calculated by dividing the income generated by the investment by the cost or current market value of the investment.