7. A risk-free, zero-coupon bond with a face value of $10,000 has 15 years to mat which of the following would be closest to the price this bond will trade at? A) $4937 B) $5760 C) $6582 D) $4114

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter6: Fixed-income Securities: Characteristics And Valuation
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7. A risk-free, zero-coupon bond with a face value of $10,000 has 15 years to maturity. If the YTM is 6.1%,
which of the following would be closest to the price this bond will trade at?
A) $4937
B) $5760
C) $6582
D) $4114
Transcribed Image Text:7. A risk-free, zero-coupon bond with a face value of $10,000 has 15 years to maturity. If the YTM is 6.1%, which of the following would be closest to the price this bond will trade at? A) $4937 B) $5760 C) $6582 D) $4114
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