Use the figure for the question(s)below.
-A risk-free, zero-coupon bond has 15 years to maturity. Which of the following is closest to the price per $100 of face value that the bond will trade at if the YTM is 7%?

Question

Use the figure for the question(s)below. 
-A risk-free, zero-coupon bond has 15 years to maturity. Which of the following is closest to the price per $100 of face value that the bond will trade at if the YTM is 7%?

Quizplus · Accepted Answer

The price of a zero-coupon bond can be calculated using the formula: Price = Face Value / (1 + YTM)^n, where n is the number of years to maturity. Plugging in the given values: Price = $100 / (1 + 0.07)^15 = $100 / (1.07)^15 ≈ $36.24.

Use the Figure for the Question(s)below