单选题

The market value of an 18-year zero-coupon bond with a maturity value of $1,000 discounted at a 12% annual interest rate with semi-annual compounding is closest to:

A、 $192.86.
B、 $130.04.
C、 $122.74.

【正确答案】 C

【答案解析】

The value of a zero-coupon bond is,

where r is the market discount rate per period and N is the number of evenly spaced periods to maturity. The value of the zero-coupon bond is,