Zeta Corporation Has Issued a $1,000 Face Value Zero-Coupon Bond

Multiple Choice

Zeta Corporation has issued a $1,000 face value zero-coupon bond.Which of the following values is closest to the correct price for the bond if the appropriate discount rate is 7% compounded annually and the bond matures in 5 years?

A) $712.99
B) $747.26
C) $1,000.00
D) $1,058.10
E) This problem cannot be worked without the annual interest payments provided.