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The Following Is a List of Prices for Zero-Coupon Bonds

Question 21

Multiple Choice

The following is a list of prices for zero-coupon bonds with different maturities and par values of $1,000. The following is a list of prices for zero-coupon bonds with different maturities and par values of $1,000. What is the price of a 4-year maturity bond with a 12% coupon rate paid annually? (Par value = $1,000.) A) $742.09 B) $1,222.09 C) $1,000.00 D) $1,141.92 What is the price of a 4-year maturity bond with a 12% coupon rate paid annually? (Par value = $1,000.)


A) $742.09
B) $1,222.09
C) $1,000.00
D) $1,141.92

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