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

Understand the role of power of attorney in legal representations and agreements.

Comprehend the implications of subsequent agreements on initial contracts.

Recognize the enforceability of promises affecting third parties not in writing under the Statute of Frauds.

Grasp the legal considerations for contracts that cannot be performed within one year.

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Definitions:

Not Excludable

A characteristic of a good or service where it is difficult or impossible to prevent individuals from enjoying its benefits, even if they do not pay for it.

Not Rival

A characteristic of a good where its consumption by one individual does not reduce availability or quality for others.

Excludable

A characteristic of a good or service that allows its owner to prevent others from using it, typically through the mechanism of property rights.

Rival in Consumption

A characteristic of a good whereby consumption by one individual prevents simultaneous consumption by another individual.