Consider a Zero-Coupon Bond with a $1000 Face Value and 15

question 81

Multiple Choice

Consider a zero-coupon bond with a $1000 face value and 15 years left until maturity. If the bond is currently trading for $431, then the yield to maturity on this bond is closest to ________.

• A) 2.89%
• B) 56.90%
• C) 43.10%
• D) 5.77%

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Definitions:

Tetrahedral Geometry

A molecular shape where a central atom is surrounded by four atoms placed at the corners of a tetrahedron.

Tetrahedral Geometry

A molecular geometry where a central atom is surrounded by four atoms placed at the corners of a tetrahedron.

Ethylene Glycol

A toxic, colorless liquid used as antifreeze in cooling and heating systems.

Carbon Atoms

The chemical element with atomic number 6, forming the basis of organic life with its ability to form stable, complex molecules.