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    Exam 15: The Term Structure of Interest Rates
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    What Should the Purchase Price of a 2-Year Zero-Coupon Bond
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What Should the Purchase Price of a 2-Year Zero-Coupon Bond

Question 42

Question 42

Multiple Choice

  What should the purchase price of a 2-year zero-coupon bond be if it is purchased at the beginning of year 2 and has face value of $1,000? A) $877.54 B) $888.33 C) $883.32 D) $893.36 What should the purchase price of a 2-year zero-coupon bond be if it is purchased at the beginning of year 2 and has face value of $1,000?


A) $877.54
B) $888.33
C) $883.32
D) $893.36

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