Kizspy | Question: 22
(Choose 1 answer)
The U.S. Treasury has issued 10-year zero coupon bonds with a face value of $1,000. Assume that the bond
compounds interest semiannually. What will be the current market price of these bonds if the yield to maturity
for similar investments in the market is 6.75 percent? (Round your answer to the nearest dollar.)
A. $520
B. $860
C. $515
D. $604
