Solved

Fred Purchases a Bond,newly Issued by the Big Time Corporation,for

Question 223

Multiple Choice

Fred purchases a bond,newly issued by the Big Time Corporation,for $20,000.The bond pays $1,000 to its holder at the end of the first,second,and third years and pays $21,000 upon its maturity at the end of four years.The principal amount of this bond is ________,the coupon rate is ________,and the term of this bond is ________.


A) $1,000;5%;four years
B) $20,000;5%;four years
C) $20,000;$1,000;5%
D) $21,000;5%;four years
E) $21,000;$1,000;5%

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents