Question
A zero-coupon corporate bond has a face value of $1000 and matures in 1 year. If the yield on government treasuries of the same maturity
A zero-coupon corporate bond has a face value of $1000 and matures in 1 year.
If the yield on government treasuries of the same maturity is 5%, which of the following are possible prices for the corporate bond?
Check all that apply:
__ $200
__ $950
__ $1000
__ $975
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Accounting What the Numbers Mean
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,
9th Edition
978-0-07-76261, 0-07-762611-7, 9780078025297, 978-0073527062
