Consider a Zero-Coupon Bond with a $1000 Face Value and 10

question 17

Multiple Choice

Consider a zero-coupon bond with a $1000 face value and 10 years left until maturity. If the YTM of this bond is 10.2%, then the price of this bond is closest to ________.

• A) $1000
• B) $454.32
• C) $530.04
• D) $379

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Definitions:

Asexually

A mode of reproduction that does not involve the fusion of gametes, resulting in offspring that are genetically identical to the parent.

Genetically Variable

Describes organisms or populations that exhibit genetic diversity, allowing for adaptation and evolution over time.

Characteristics

Features or qualities that distinguish an organism or object from others, often used to classify or identify them.

Life

Life refers to the condition that distinguishes animals, plants, and other organisms from inorganic matter, marked by growth, reproduction, and the capacity to adapt to the environment.