Solved

The Following Is a List of Prices for Zero-Coupon Bonds  Maturity  Price  (Years) 1$925.152862.573788.664711.00\begin{array}{cc}\text { Maturity } & \text { Price } \\\text { (Years) } & \\1 & \$ 925.15 \\2 & 862.57 \\3 & 788.66 \\4 & 711.00\end{array}

Question 53

Multiple Choice

The following is a list of prices for zero-coupon bonds with different maturities and par values of $1,000.  Maturity  Price  (Years)  1$925.152862.573788.664711.00\begin{array}{cc}\text { Maturity } & \text { Price } \\\text { (Years) } & \\1 & \$ 925.15 \\2 & 862.57 \\3 & 788.66 \\4 & 711.00\end{array}

What is the price of a 4-year maturity bond with a 10% coupon rate paid annually? (Par values = $1,000.)


A) $742.09
B) $1,222.09
C) $1,035.72
D) $1,141.84

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions