Question

Suppose you purchase a zero-coupon bond (coupon = 0%) with a face value of $1,000 and...

Suppose you purchase a zero-coupon bond (coupon = 0%) with a face value of $1,000 and a maturity of 25 years, for $200. If the yield to maturity on the bond remains unchanged, what will the price of the bond be 5 years from now?

$800.00

$253.64

$297.58

$275.95

$267.52

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