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A Risk-Free,zero-Coupon Bond with a Face Value of $1,000 Has

Question 42

Multiple Choice

A risk-free,zero-coupon bond with a face value of $1,000 has 15 years to maturity.If the YTM is 5.8%,which of the following would be closest to the price this bond will trade at?


A) $721
B) $686
C) $525
D) $429
E) $397

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