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:

Cross-sectional Method

A research design that compares different population groups at a single point in time.

Different Ages

Refers to the diversity of age groups within a population, each having unique physical, psychological, and social characteristics.

Intellectual Change

The evolution or transformation in cognitive functions and processes, such as thinking, reasoning, and understanding.

Correlation Coefficient

A statistical measure that indicates the extent to which two variables fluctuate together, revealing the strength and direction of their relationship.