Zeta Corporation Has Issued a $1,000 Face Value Zero-Coupon Bond

question 68

Multiple Choice

Zeta Corporation has issued a $1,000 face value zero-coupon bond. Which of the following values is closest to the correct price for the bond if the appropriate discount rate is 4% and the bond matures in 8 years?

• A) $968.
• B) $731.
• C) $1,000.
• D) $25,000.

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Definitions:

Presentation Currency

The currency in which a company's financial statements are presented, typically the national currency of the country where the company is headquartered.

Functional Currency

The currency of the primary economic environment in which an entity operates, typically used in preparing financial statements.

Functional Currency

The currency of the primary economic environment in which an entity operates, used in measuring its financial performance and position.

Competitive Forces

Various external factors that influence the competitive environment of a business, often analyzed using Porter's Five Forces framework.