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The Following Is a List of Prices for Zero Coupon

Question 15

Multiple Choice

The following is a list of prices for zero coupon bonds with different maturities and par value of $1,000.  Maturity (Years)   Price 1$943.402$881.683$808.884$742.09\begin{array} { | l | l | } \hline \text { Maturity (Years) } & \underline { \text { Price } } \\\hline 1 & \$ 943.40 \\\hline 2 & \$ 881.68 \\\hline 3 & \$ 808.88 \\\hline 4 & \$ 742.09 \\\hline\end{array}
-What is the price of a 4-year maturity bond with a 12% coupon rate paid annually? (Par value = $1,000)


A) $742.09
B) $1,222.09
C) $1,000.00
D) $1,141.92
E) none of the above

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