An investor holds a bond with a face value of $5000, a coupon rate of 4%, and semiannual payments that matures on 15/01/2012. How much will the investor receive on 15/01/2012?

Question

Quizplus · Accepted Answer

The investor will receive the face value of the bond, which is $5000, plus the last coupon payment, which is $100 ($5000 x 4% x 6/12). So the total amount the investor will receive is $5100.

An Investor Holds a Bond with a Face Value of $5000