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Calculate the Price of a Zero-Coupon Bond That Matures in 10

Question 108

Multiple Choice

Calculate the price of a zero-coupon bond that matures in 10 years if the market interest rate is 6 percent. (Assume semiannual compounding and $1,000 par value.)


A) $553.68
B) $558.66
C) $940.00
D) $1,000.00

Correct Answer:

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