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    Exam 7: Fixed Income Securities: Characteristics and Valuation
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    A Refrigerator Manufacturer, Zero King, Issued a Zero Coupon Bond
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A Refrigerator Manufacturer, Zero King, Issued a Zero Coupon Bond

Question 70

Question 70

Multiple Choice

A refrigerator manufacturer, Zero King, issued a zero coupon bond with 10 years to maturity. What is the yield-to-maturity of this bond if it is sold for $352?


A) 12.2%
B) 10%
C) 11%
D) 9%

Correct Answer:

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