Question: Consider a zero- coupon bond with $100 face value and 20 years to maturity. The price will this bond trade if the YTM is 4.9%

Consider a zero- coupon bond with $100 face value and 20 years to maturity. The price will this bond trade if the YTM is 4.9% is closest to

A- $38.41

B- $46.1

C- 61.46

D- 53.78

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Consider a zero coupon bond with $ 1 0 0 face value and 2 0 years to maturity. If the YTM is 6 . 1 % , this bond will trade at a price closest to _ A . $ 3 6 , 7 2 B . $ 4 2 . 8 4 C . $ 4 8 . 9 6 D ....

Q:

Consider a zero - coupon bond with $1000 face value, and 20 years to maturity. The price at which this bond will trade if the YTM is 6% is closest to: A. $335. B. $215. C. $306. D. $312

Q:

consider a zero coupon bond with 1000 face value and 10 years to maturity. the price will this bond trade is the YTM is 6.4% is closest to: a- 752.86 B- 645.3 C-537.75 D-860.41

Q:

Consider a zero coupon bond with $1000 face value and 20 years to maturity. The price of this bond if its yield-to-maturity is 2% is closest to: Group of answer choices $456 None of these...

Q:

Consider a zero-coupon bond with $100 face value and 20 years to maturity. The price will this bond trade if the YTM is 7.4% is closest to:

Q:

Consider a zero-coupon bond with $100 face value and 20 years to maturity. The price will this bond trade if the YTM is 5.4% is closest to: O A. $34.93 OB. $55.89 OC. 5489 OD. 541.91

Q:

Consider a zerocoupon bond with $100 face value and 20 years to maturity. The price will this bond trade if the YTM is 7.2% is closest to: O A $24.89 O B. S39.83 O C. $29.87 O D. $34.85

Q:

Consider a zero-coupon bond with $100 face value and 20 years to maturity. The price will this bond trade if the YTM is 5.9% is closest to O A. $38.13 OB. $31.77 C. $50.84 D. $44.48

Q:

Consider a zero-coupon bond with $100 face value and 20 years to maturity. The price of this bond if the current YTM is 6.6% is closest to: A. $44.56 B. $27.85 C. $38.99 D. $33.42

Q:

A stock is expected to pay $1.05 per share every year indefinitely and the equity cost of capital for the company is 7.8%. What price would an investor be expected to pay per share ten years in the...

Q:

Identify and briefly describe four basic SBA credit programs.

Q:

A simple single-lens camera (convex lens) is used to photograph a man 1.7 m tall who is standing 4.0 m from the camera. If the mans image fills the height of a frame of film (35 mm), what is the...

Q:

Which of the following statements is false? Group of answer choices Natural resources can be either renewable or exhaustible. Real assets generate net - income to the society. Financial assets are...

Q:

If the percent yield for the following reaction is about 6 5 . 0 % , what is the theoretical yield of O 2 if you actually produced 1 2 6 grams? 2 K C l O 3 ( s ) 2 K C l ( s ) + 3 O 2 ( g )

Q:

(LO 6-1) Match the analytics type (descriptive, diagnostic, predictive, or prescriptive) to each analytics technique. Analytics Technique 1. Classification 2. Sorting 3. Regression 4. t-Tests 5....

Q:

(LO 6-3) Match the diagnostic analytics questions to the following diagnostic analytics techniques. Z-score t-Test Benfords law Drill-down Fuzzy matching Sequence check Diagnostic Analytics Questions...

Q:

(LO 6-2) One type of descriptive analytics is simply sorting data. Why is seeing extreme values helpful (minimums, maximums, counts, etc.) in evaluating accuracy and completeness and in potentially...