Solved

What Is the Market Value of a Zero Coupon Bond

Question 37

Multiple Choice

What is the market value of a zero coupon bond with 5 years to maturity? The bond was originally sold with a yield to maturity equal to 11 percent, but the market rate today is 9 percent.


A) $593
B) $650
C) $621
D) $577

Correct Answer:

verifed

Verified

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

Related Questions