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Bond a and Bond B Are Both Zero-Coupon,risk-Free Bonds

Question 57

Multiple Choice

Bond A and Bond B are both zero-coupon,risk-free bonds.They both have the same yield to maturity and face value.However,they have different maturity dates.Using the information in the above table,what is the Price of Bond B? A) $1,000 B) $620.92 C) $1,610.51 D) $500 E) $385.54
Bond A and Bond B are both zero-coupon,risk-free bonds.They both have the same yield to maturity and face value.However,they have different maturity dates.Using the information in the above table,what is the Price of Bond B?


A) $1,000
B) $620.92
C) $1,610.51
D) $500
E) $385.54

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