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-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?

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?

Quizplus · Accepted Answer

The price of a zero-coupon bond is calculated by discounting the face value back to the present using the yield to maturity. For a BBB rated bond, if the yield to maturity is given (which is not directly provided in the question but is implied to be relevant for the calculation), the formula to calculate the price is: Price = Face Value / (1 + Yield to Maturity). Assuming a yield that corresponds to a BBB rating and a face value of $100, the correct price aligns with option B, given the options provided. Without the exact yield value, the precise calculation can't be shown, but the selection is based on typical financial principles.

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