The Per-Period Yield to Maturity of a Zero-Coupon Bond

question 8

Multiple Choice

The per-period yield to maturity of a zero-coupon bond:

• A)is the discount rate that makes the discounted value of its coupon payments equal to its current market price.
• B)is the discount rate that makes the discounted value of its face amount equal to its par value.
• C)is the discount rate that makes the discounted value of its coupon payments equal to its face value.
• D)is the discount rate that makes the discounted value of its face amount equal to its current market price.

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Occurring occasionally or at irregular intervals; not consistently or regularly.

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An unspecified or indefinite place.

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The political stance against the withdrawal of state support from an established church, notably used in historical contexts such as 19th-century Britain.

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