Question: Consider a zero-coupon bond with a $100 face value and 15 years left until maturity. If the YTM of this bond is 5.9%, then the

Consider a zero-coupon bond with a $100 face value and 15 years left until maturity. If the YTM of this bond is 5.9%, then the price of this bond is closest to

a. 67. 71

b. 42.32

c. 59.25

d. 50.79

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!

Consider a zero-coupon bond with a $100 face value and 15 years left until maturity. If the YTM of this band is 102%. then the price of this bond is closest to O A $23.00 OB $100.00 O.C. $27.95...

Consider a zero - coupon bond with a $ 1 , 0 0 0 face value and 1 5 years left unsil maturity. If the YTM of this bond is 6 . 6 % . then the price of this bond is closect to A . $ 3 8 3 B . $ 5 3 6 7...

20) Since your birth, your grandparents have been depositing $110 into a savings account every month. The accQunt pays 12% interest annually. Immediately after your grandparents make the deposit on...

Consider a zero-coupon bond with a $100 face value and 15 years left until maturity, if the YTM of this bond is 10.7%, then the price of this bond is closest to A. $22.00 OB. $26.12 Oc. $30.47 D....

Consider a zero-coupon bond with a $ 100 face value and 15 years left until maturity. If the YTM of this bond is 8.3%, then the price of this bond is closest to:

Period 0 1 2 3 119 120 $18.3 $18.3 $18.3 $18.3 $18.3 + $5,000 A corporation issues a bond that generates the above cash flows. If the periods shown are 1 month, which of the following best describes...

Consider a zero-coupon bond with a $100 face value and 20 years left until maturity. If the YTM of this bond is 5.4%, then the price of this bond is closest to: O A. $100.00 OB. $41.91 O C. $48.90...

Consider a zero-coupon bond with a $100 face value and 10 years left until maturity. If the YTM of this bond is 51%, then the price of this bond is closest to O A. $72.97 OB. 585.13 OC. $100.00 OD....

Consider a zero-coupon bond with a $100 face value and 10 years left until maturity. If the YTM of this bond is 7%, then the price of this bond is closest to A. $71.17 B. $61.00 OC. $51.00 D. $100.00

This Question: 1 pt 18 of 25 (6 complete) This Test: 25 pts possible Consider a zero-coupon bond with a $100 face value and 20 years left until maturity. If the YTM of this bond is 10.8%, then the...

What type of bond would you recommend that it actually buy?

4. Firm A has only debt and equity in its capital. Its debt consists of a 10-million- dollar bond with coupon rate 6% paid semi-annually. The bond has a market price of $1100 and 10-year maturity....

sesloc has 4 4 0 0 0 shares of common stock outstanding at a market price of $ 3 2 a share

business law case brief for Hertz Corp. v . Friend

Think about diversity and inclusion experience at the workplace in your cultural context. Based on your personal experience during the past two years, share one thing that you consider should have...

Understand how relocating headquarters functions from big cities to rural areas influences the work styles and employees work-life balance.

In your view, do you think leadership can influence HRM practices such as recruitment, selection, training, and career development in promoting gender diversity and inclusion in an organization?