A bondholder that owns a $1,000, 10%, 10-year bond has:

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A bondholder with a $1,000, 10%, 10-year bond has the right to receive $1,000 at maturity, which is the face value of the bond. The 10% coupon rate indicates that the bondholder will receive $100 annually in interest payments until maturity. The bondholder does not have ownership rights in the issuing company and therefore will not receive any dividends. Option A is incorrect because $10,000 would be the total payment if the bondholder owned 10 bonds of $1,000 each. Option D is incorrect because $10 is the annual interest payment, not the total payment at maturity.

A Bondholder That Owns a $1,000, 10%, 10-Year Bond Has