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For Bonds a and B Below, Find the Values of X

Question 68

Multiple Choice

For bonds A and B below, find the values of X and Y assuming each is a zero coupon bond with a $1,000 face value (semiannual compounding) .  Bond  Maturity  (Years)   Yield  (Percent)   Price ($$) AX10458.10B9Y212.00\begin{array}{|c|c|c|c|}\hline \text { Bond } & \begin{array}{c}\text { Maturity } \\\text { (Years) }\end{array} & \begin{array}{c}\text { Yield } \\\text { (Percent) }\end{array} & \begin{array}{c}\text { Price } \\(\$ \$) \end{array} \\\hline \mathrm{A} & \mathrm{X} & 10 & 458.10 \\\hline \mathrm{B} & 9 & \mathrm{Y} & 212.00 \\\hline\end{array}


A) 8 years and 4%
B) 10 years and 8%
C) 12 years and 10%
D) 14 years and 12%
E) 8 years and 18%

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