Question

NEED HELP!!!! ASAP!!!!!!!!!
A bond is sold at a face value of $200 with an annual yield of 3%. How much will the bondholder have received in payment from the bond issuer after the bond has reached its maturity date of one year?(1 point)

A. $406
B. $206
C. $200
D. $6

Answer 1

Based on the annual yield of the bond, and the period to maturity, the amount the bondholder will receive is B. $206.

What will the bond holder receive?

The bondholder will receive the yield on the bond which is 3% in addition to the face value of the bond.

The formula is therefore:

= Face value of bond x Yield

Solving gives:

= 200 x 3%
= $6

Add to the face value:

= 200 + 6

= $206

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