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

Question 29

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. You have purchased a 4-year maturity bond with a 9% coupon rate paid annually.The bond has a par value of $1,000.What would the price of the bond be one year from now if the implied forward rates stay the same? A) $995.63 B) $1,108.88 C) $1,000.00 D) $1,042.78 You have purchased a 4-year maturity bond with a 9% coupon rate paid annually.The bond has a par value of $1,000.What would the price of the bond be one year from now if the implied forward rates stay the same?


A) $995.63
B) $1,108.88
C) $1,000.00
D) $1,042.78

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