A Ten-Year, Zero-Coupon Bond with a Yield to Maturity of 4

question 27

Multiple Choice

A ten-year, zero-coupon bond with a yield to maturity of 4% has a face value of $1000. An investor purchases the bond when it is initially traded, and then sells it four years later. What is the rate of return of this investment, assuming the yield to maturity does not change?

• A) 3.20%
• B) 2.40%
• C) 4.00%
• D) 2.00%

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Definitions:

Parenting Role

The responsibilities and actions that an individual takes on to raise, guide, and nurture a child.

Larger Context

Pertains to the broader circumstances or factors surrounding an event or situation, often influencing the understanding or interpretation of that event.

Family Therapy

A form of psychotherapy that involves all members of a nuclear or extended family and aims to address dysfunctional patterns and relationships within the family unit.

Cognitive Restructuring

Cognitive Restructuring is a psychological technique that aims to identify and challenge irrational or maladaptive thoughts and replace them with more rational or adaptive thoughts.