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A $1,000 Face Value Zero-Coupon Bond Is Quoted at a Price

Question 79

Multiple Choice

A $1,000 face value zero-coupon bond is quoted at a price of 38.62. What is the amount you will pay to purchase this bond?

A) $.39
B) $3.86
C) $38.62
D) $386.20
E) $1,038.62

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