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A Risk-Free, Zero-Coupon Bond Has 15 Years to Maturity

Question 10

Multiple Choice

A risk-free, zero-coupon bond has 15 years to maturity. Which of the following is closest to theprice per $100 of face value that the bond will trade at if the YTM is 7%?


A) $29.55
B) $32.68
C) $38.78
D) $36.24

Correct Answer:

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