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XYZ Co Zero-Coupon Bonds Have a Face Value of $1,000 and and Mature

Question 224

Multiple Choice

XYZ Co. zero-coupon bonds have a face value of $1,000 and mature in 18 years. They currently sell for $179.86 today. By what percentage will the market price rise if the market's required return falls by half?


A) 99%
B) 131%
C) 137%
D) 175%
E) 231%

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