Use the Table for the Question(s)below

question 63

Multiple Choice

Use the table for the question(s) below.
Consider the following zero-coupon yields on default-free securities:
-The price today of a 3-year default-free security with a face value of $1000 and an annual coupon rate of 6% is closest to:

• A)$1000.
• B)$1021.
• C)$1013.
• D)$1005.

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Definitions:

Illness

A condition of being unwell, either physically or mentally.

Judgment Debt

The amount of money that a court has ordered one party to pay another party as a result of legal action.

Exempt Property

Assets that are protected by law from being seized by creditors or during bankruptcy proceedings.

Collateral

Assets pledged by a borrower to secure a loan or credit, which can be seized by the lender if the borrower fails to make payments.