The Price of a Five-Year,zero-Coupon,default-Free Security with a Face Value

question 52

Multiple Choice

The price of a five-year,zero-coupon,default-free security with a face value of $1000 is closest to:

• A)$754.
• B)$772.
• C)$776.
• D)$791.

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Definitions:

Brand Names

The distinctive names given to products or services by businesses to identify and differentiate them from competitors.

Elastic Demand

A situation where the quantity demanded of a good or service significantly changes in response to a change in its price.

Generic Products

Products that are not branded and are sold without any proprietary name or trademark.

"Staying" Power

refers to the endurance or capacity of an entity, such as a company or product, to remain relevant or competitive over a long period.