Allan purchased a zero coupon bond four years ago. He paid $3,000 and it has a face value of $3,500. How much money did he earn for holding the bond until maturity

Question

27-02-2018
Mathematics

contestada

Allan purchased a zero coupon bond four years ago. He paid $3,000 and it has a face value of $3,500. How much money did he earn for holding the bond until maturity

Respuesta :

Otras preguntas

I WILL GIVE YOU BRAINLIEST!!!!!!!Which of the following was part of the Fugitive Slave Act passed in 1850? A. It was now illegal for slaves to run away f

Expand and simplify ( m + 7 )( m + 3 )

What problems did america face as it entered the war of 1812?

what is the speed of a 2.5-kilogram mass after ot has fallen freely from rest through a distance of 12 meters? a) 4.8 m/s b) 15 m/s c) 30. m/s d) 43 m/s

what hardware components should be considered when deciding what applications to install?

What does intensity contribute to the success of an interest group?

What describes the economy of the north in the antebellum era?

What does EUP stand for

hours worked / pay 2/$15.00 4/$30.00 6/$45.00 8/$60.00 A/p=7.50h B/ p=15h C/ p=h+15 D/h=7.50p

During the 1998-1999 Junior Hockey League season, the Sharks played 66 games. Together, their wins and losses totaled 59. They tied 14 fewer games than they los

ACCESS MORE

LeonardoVivaldi LeonardoVivaldi · Answer 1 · 2018-02-27T20:15:53+01:00

Answer: $500

Explanation: The face value of any types of bond is the value of the bond at the time of maturity. So, the value of Allan's zero coupon bond is $3,500 because $3,500 is the face value of the bond he bought.

So the money he earns for holding the bond until maturity is the difference when the face value is subtracted to the cost he paid for the bond. Since

$3,500 - $3,000 = $500

Therefore, Allan earned $500 for holding the bond until maturity.