If a Zero-Coupon Bond with a Face Value of $1,000

question 258

Multiple Choice

If a zero-coupon bond with a face value of $1,000 costs $800,then the rate of return if held to maturity would be:

• A) -20%.
• B) 20%.
• C) -25%.
• D) 25%.

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Definitions:

Scaffolding

An educational technique that involves providing support to students or learners in the early stages of learning, gradually removing the support as the learner becomes more proficient.

Rehearsal

The act of purposely repeating information to maintain it in short-term memory.

Meta Cognition

Refers to the awareness and control one has over their own thought processes, including planning, monitoring, and evaluating their cognitive activities.

Elaboration

An addition of details or information to enrich a concept, idea, or argument, often enhancing understanding or interest.