Use the figure for the question(s) below.
-A risk-free, zero-coupon bond with a face value of $10,000 has 15 years to maturity. If the YTM is 6.1%, which of the following would be closest to the price this bond will trade at?
A) $4937
B) $5760
C) $6582
D) $4114

Question

Use the figure for the question(s) below. 
-A risk-free, zero-coupon bond with a face value of $10,000 has 15 years to maturity. If the YTM is 6.1%, which of the following would be closest to the price this bond will trade at?
A) $4937 
B) $5760 
C) $6582 
D) $4114

Quizplus · Accepted Answer

D) Price = (Face value) / 11ea84dc_f566_ae4b_9a63_4373903e1c12_TB1316_11_TB1316_11 . Price = ($10,000) / 11ea84dc_f566_ae4c_9a63_d70a551e085d_TB1316_11_TB1316_11 = $4114

Use the Figure for the Question(s) Below