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The Following Is a List of Prices for Zero-Coupon Bonds  Maturity  (Years)  Price 1$925.152862.573788.664711.00\begin{array}{cc}\text { Maturity }\\\text { (Years) } & \text { Price } \\1 & \$ 925.15 \\2 & 862.57 \\3 & 788.66 \\4 & 711.00\end{array}

Question 48

Multiple Choice

The following is a list of prices for zero-coupon bonds with different maturities and par values of $1,000.  Maturity  (Years)   Price 1$925.152862.573788.664711.00\begin{array}{cc}\text { Maturity }\\\text { (Years) } & \text { Price } \\1 & \$ 925.15 \\2 & 862.57 \\3 & 788.66 \\4 & 711.00\end{array} You have purchased a 4-year maturity bond with a 9% coupon rate paid annually. The bond has a par value of $1,000. What would the price of the bond be one year from now if the implied forward rates stay the same?


A) $995.63
B) $1,108.88
C) $1,000.00
D) $1,042.78

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