Question $13$

Assume that a $1-$year zero$-$coupon bond is issued with a face value of $$1,000$ and the yield to

maturity of $8\mathrm{.}5\%.$ What is the value of this zero$-$coupon bond and investor's profit when it

matures?

$$834$; $$166$

$$922$; $$78$

$$665$; $$335$

$$1,000$; $$0$