For Bonds a and B Below Find the Values of X

question 98

Multiple Choice

For bonds A and B below find the values of X and Y assuming each is a zero-coupon bond with a $1,000 face value (semiannual compounding) .

• A) eight years and 4 percent
• B) 10 years and 8 percent
• C) 12 years and 10 percent
• D) 14 years and 12 percent
• E) eight years and 18 percent

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