Spencer did research on the bond market and found the following default-free zero-coupon bonds:   Bond Years to Maturity Yield to Maturity Par Value A 1 3.0% $1,000 B 2 4.0% $1,000 C 3 5.0% $1,000 D 4 6.0% $1,000 E 5 7.0% $1,000   Using implied rates, what will the price of Bond D be two years from now?     $810.55     $831.60     $856.73     $910.28     $1025.03

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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  1. Spencer did research on the bond market and found the following default-free zero-coupon bonds:
     
    Bond Years to Maturity Yield to Maturity Par Value
    A 1 3.0% $1,000
    B 2 4.0% $1,000
    C 3 5.0% $1,000
    D 4 6.0% $1,000
    E 5 7.0% $1,000

     
    Using implied rates, what will the price of Bond D be two years from now?
       

    $810.55

       

    $831.60

       

    $856.73

       

    $910.28

       

    $1025.03

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