单选题
Exactly one year ago, an investor purchased a $1000 face value, zero-
coupon bond with 11 years remaining to maturity. The YTM was 8.0%. Now, one year
later, with market rates unchanged, an investor purchases an annuity that pays $
40 every six months for 10 years. The combined value of the two investments
based on the 8% BEY is approximately:
- A. $966.
- B. $1000.
- C. $1007.
【正确答案】
B
【答案解析】The two investments combine to form a 10 - year, $1000 face value, 8.0% semiannual coupon bond that would sell at par because the YTM (expressed as a BEY) equals the coupon rate. Thus the combined value is $1000. The zero-coupon bond is worth: 1000/1.0420=$456.39 and the annuity payments are worth $543.61 (N=10×2=20, PMT=40, I/Y=8/2=4,FV=0, PV=-543.61).