Consider a Zero-Coupon Bond with a $1 000 Face Value

question 30

Multiple Choice

Consider a zero-coupon bond with a $1 000 face value and 10 years left until maturity. If the YTM of this bond is 10.4%, then the price of this bond is closest to:

• A)$1 040
• B)$1 000
• C)$372
• D)$602

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Definitions:

Adoption Studies

Research methods that compare adopted children to their biological and adoptive families to understand the influence of genetics and environment on development.

Genetic Influence

Genetic influence involves the impact of genes inherited from one's parents on physical traits, behaviors, and susceptibilities to certain conditions.

Personalities

The unique combination of emotional, attitudinal, and behavioral response patterns of an individual.

Parents

Guardians or caretakers who are responsible for raising and nurturing children, providing them with emotional and physical support.