Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. exit the interest rate on a 10 percent, 10-year ze

EXIT The interest rate on a 10 percent, 10-year zero-coupon bond with a $1,000 face...

60.1K

Verified Solution

Question

Finance

EXIT

The interest rate on a 10 percent, 10-year zero-coupon bond with a $1,000 face value falls from 8 percent to 7 percent. Which of the following is true of the value of the bond? (Round the answer to two decimal places.)

A. The present value of the bond at 7 percent is $463.19.

B. The maturity value of the bond at 7 percent is $508.34.

C. The present value of the bond at 7 percent is $508.34.

D. The maturity value of the bond at 8 percent is $508.34.

E. The present value of the bond at 8 percent is $508.34.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Suppose there are 4 trains connecting town X to town Y and 6 roads connecting...

Algebra
Q

Researchers at the Mayo Clinic found a significant association between hospital sound levels and patient healing...

Statistics
Q

When can multiple optimal solutions can occur in linear programming problems? Explain.

Basic Math
Q

A small linear charge is hanging in equilibrium above an infinitely long straight line charge...

Physics
Q

The relation between angular frequency and wave number k for given type of waves is...

Physics
Q

mixing system consists of two tanks Tank 1 has a volume of 1000 m Thank...

Basic Math
Q

The point (15,16) is on the graph of y=f(x). Find the corresponding point on the...

Basic Math
Q

A university class has 29 students: 14 are nursing majors, 9 are history majors, and...

Basic Math
Q

marketing company runs a web campaign that includes running an ad on the common platforms...

Statistics
Q

A company is designing propane tanks that are cylindrical with hemispherical ends Assume that the...

Calculus
Q

Amalgamated General Corporation is a consulting firm that also offers financial services through its credit...

Accounting
Q

Describe phantom stock & SARS are and how they are used to encourage key employees...

Accounting