Question: Consider a $1,000 face value zero coupon bond which matures in 15 years. What is the fair price for the bond if the yield is

Consider a $1,000 face value zero coupon bond which matures in 15 years. What is the fair price for the bond if the yield is 5%?

A.

$536.39

B.

$520.68

C.

$465.32

D.

$481.02

E.

$386.45

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