The table below shows market prices for four zero coupon bonds with four different terms: one, two, three and four years. The bonds all have a face value of $1,000. Which line best represents the yield curve derived from the bond prices in the table? Use the letter labels at the end of each line. Zero Coupon Bond Prices
$$\begin{array} { | c | c | }
\hline \text { Term (years) } & \text { Price } ( \$ ) \
\hline \mathbf { 1 } & 970.8738 \
\hline \mathbf { 2 } & 933.5107 \
\hline \mathbf { 3 } & 888.9964 \
\hline \mathbf { 4 } & 822.7025 \
\hline
\end{array}$$

Question

The table below shows market prices for four zero coupon bonds with four different terms: one, two, three and four years. The bonds all have a face value of $1,000. Which line best represents the yield curve derived from the bond prices in the table? Use the letter labels at the end of each line. Zero Coupon Bond Prices
$$\begin{array} { | c | c | } 
\hline \text { Term (years) } & \text { Price } ( \$ ) \
\hline \mathbf { 1 } & 970.8738 \
\hline \mathbf { 2 } & 933.5107 \
\hline \mathbf { 3 } & 888.9964 \
\hline \mathbf { 4 } & 822.7025 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The Answer of The table below shows market prices for four zero coupon bonds with four different terms: one, two, three and four years. The bonds all have a face value of $1,000. Which line best represents the yield curve derived from the bond prices in the table? Use the letter labels at the end of each line. Zero Coupon Bond Prices
$$\begin{array} { | c | c | } 
\hline \text { Term (years) } & \text { Price } ( \$ ) \
\hline \mathbf { 1 } & 970.8738 \
\hline \mathbf { 2 } & 933.5107 \
\hline \mathbf { 3 } & 888.9964 \
\hline \mathbf { 4 } & 822.7025 \
\hline
\end{array}$$

The Table Below Shows Market Prices for Four Zero Coupon