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Ted's Co Offers a Zero Coupon Bond with an 11

Question 18

Multiple Choice

Ted's Co. offers a zero coupon bond with an 11.3% yield to maturity. The bond matures in 16 years. What is the current price of a $1,000 face value bond?


A) $178.78
B) $180.33
C) $188.36
D) $190.09
E) $192.18

Correct Answer:

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