Author Question: The interest rate risk associated with Treasury bonds is much higher than with bills. Indicate ... (Read 131 times)

2125004343 · **on:** Jul 11, 2018

The interest rate risk associated with Treasury bonds is much higher than with bills.

Indicate whether the statement is true or false

Question 2

Jia Hua Enterprises wants to issue sixty 20-year, 1,000 par value, zero-coupon bonds. If each bond is priced to yield 7 percent, how much will Jia Hua receive (ignoring issuance costs) when the bonds are first sold?

A) 11,212
B) 12,393
C) 15,505
D) 18,880