An investor holds a Ford bond with a face value of S1000 ac upon rate of...

Question

Question

Answer 1

Answer #1

01/15/2029 is maturity date for bond.

On maturity investor holder will receive his last coupon amount and maturity amount.

Coupon rate is 4% semi-annual payment.

So, last coupon will be semi-annual coupon of $ 20 (1000 * 4% * 6/12 = $20)

At maturity investor shall receive

$20 (coupon) + $1000 (maturity amount)

= $1,020

Answer is C $1,020.

Answer 2

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