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What Is the Value of a Zero-Coupon Bond with a Yield

Question 136

Multiple Choice

What is the value of a zero-coupon bond with a yield to maturity of 9 percent, a par value of $1,000, and 10 years to maturity? (Assume semi-annual compounding)


A) $208.29
B) $414.64
C) $422.41
D) $643.93
E) $910.00

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