Use the Figure for the Question(s) Below

question 12

Multiple Choice

Use the figure for the question(s) below.
-The current zero-coupon yield curve for risk-free bonds is shown above. What is the price of a zero-coupon, four-year, risk-free bond of $100?

• A) $85.64
• B) $87.99
• C) $92.15
• D) $96.67

---

Definitions:

Easily Discouraged

Quick to lose confidence or enthusiasm in the face of challenges or setbacks.

Entrepreneurs

Individuals who initiate, manage, and assume the risks of starting and operating a new business venture.

Setbacks

Unforeseen events or challenges that slow progress or cause plans to be revised.

Equity Financing

Raising capital through the sale of shares in a company, thus providing investors with part ownership in exchange for funds.