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Autos and More Offers a Zero Coupon Bond with a Yield

Question 28

Multiple Choice

Autos and More offers a zero coupon bond with a yield to maturity of 11.3 percent.The bond matures in 15 years and has a face value of $1,000.What is this bond worth today? (Assume semiannual compounding. )


A) $192.27
B) $161.90
C) $208.36
D) $201.71
E) $184.09 Autos and More offers a zero coupon bond with a yield to maturity of 11.3 percent.The bond matures in 15 years and has a face value of $1,000.What is this bond worth today? (Assume semiannual compounding. ) A) $192.27 B) $161.90 C) $208.36 D) $201.71 E) $184.09

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