Suppose You Purchase a Zero-Coupon Bond with Face Value $1,000

Multiple Choice

Suppose you purchase a zero-coupon bond with face value $1,000, maturing in 20 years, for $214.51. If the yield to maturity on the bond remains unchanged, what will the price of the bond be five years from now?

A) $315.20
B) $387.52
C) $410.91
D) $680.58
E) $1,000.00