Consider the Following Yields to Maturity on Various One-Year, Zero-Coupon

question 62

Multiple Choice

Consider the following yields to maturity on various one-year, zero-coupon securities: The price (expressed as a percentage of the face value) of a one-year, zero-coupon corporate bond with a BBB rating is closest to ________.

• A) 112.68
• B) 131.46
• C) 75.12
• D) 93.90

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Definitions:

Ions

Atoms or molecules with a net electric charge due to the loss or gain of one or more electrons.

Single Covalent

A type of chemical bond where two atoms share one pair of valence electrons, resulting in a stable molecule.

Ionic Bond

An ionic bond is a type of chemical bond formed through the electrical force between oppositely charged ions.

Double Covalent

A type of chemical bond where two pairs of electrons are shared between two atoms.