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 $1000 of face value that the bond will trade at if the YTM is 6.1%?
A) $663.78
B) $774.42
C) $553.15
D) $885.05

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 $1000 of face value that the bond will trade at if the YTM is 6.1%?
A) $663.78 
B) $774.42 
C) $553.15 
D) $885.05

Quizplus · Accepted Answer

C) Price = (Face value) / 11ea84dc_f566_ae4d_9a63_1b24e379cee6_TB1316_11_TB1316_11 . Price = ($1000) / 11ea84dc_f566_ae4e_9a63_0bcb16cc0cae_TB1316_11_TB1316_11 = $553.15

Use the Figure for the Question(s) Below