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

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 8MC: Suppose a 10-year, 10% semiannual coupon bond with a par value of 1,000 is currently selling for...
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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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