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If you invest $1900 in a new bond issue and earn a coupon rate of 6%...

If you invest $1900 in a new bond issue and earn a coupon rate of 6% per year, how much will you receive when the bond matures?

a)Nothing.

b) $3040.

c)$1900.

d) $114.

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Answer #1

Correct Option : C) $1900

When bond matures you will get par value of the bond or investment value . Since in the given case par value is not given we can assume that par value is $1900. Hence you will get $1900 at the time of maturity.

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