Use the information for the question(s)below.

-The above table shows the yields to maturity on a number of one-year,zero-coupon securities.What is the price per $100 of the face value of a one-year,zero-coupon corporate bond with a BBB rating?
A)$92.21
B)$93.54
C)$94.16
D)$94.87
E)$94.52

Question

Use the information for the question(s)below.
 
-The above table shows the yields to maturity on a number of one-year,zero-coupon securities.What is the price per $100 of the face value of a one-year,zero-coupon corporate bond with a BBB rating?
A)$92.21 
B)$93.54 
C)$94.16 
D)$94.87 
E)$94.52

Quizplus · Accepted Answer

The price of a zero-coupon bond is calculated using the formula: Price = Face Value / (1 + Yield)^n. Assuming the yield for a BBB-rated bond is given in the table, use this yield to calculate the price.

Use the Information for the Question(s)below