Calculate the Yield to Maturity of a Zero-Coupon Bond with a Face

question 11

Multiple Choice

Calculate the yield to maturity of a zero-coupon bond with a face value of $1000, maturing in 10 years, and selling for a price of $628.72.

• A) 4.18 percent
• B) 4.75 percent
• C) 6.29 percent
• D) 8.23 percent
• E) 9.54 percent

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Definitions:

Peripheral Route

An influence pathway where individuals are persuaded in an argument by factors not related to the substance of the argument, such as the speaker's credibility or attractiveness.

Message Order

The sequence in which messages are arranged and delivered in communication.

Source Credibility

The level of trustworthiness, expertise, and reliability attributed to the origin of information or the speaker.

Peripheral Route

A method of persuasion that relies on superficial cues or peripheral details to influence attitudes, rather than direct, logical argumentation.