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Calculate the Price of a Zero-Coupon Bond with Yield to Maturity

Question 66

Multiple Choice

Calculate the price of a zero-coupon bond with yield to maturity of 8.75 percent, a face value of $1000, and maturing in five years.

A) $1000
B) $756.43
C) $675.44
D) $435.12
E) $875.14

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