The following bond quotation indicates that the holder expects to receive ____ in interest annually: PACEI 11s 09 11.6 20 95 -1
A) $90
B) $116
C) $95
D) $110

Question

Quizplus · Accepted Answer

The bond quotation "PACEI 11s 09" indicates a bond with a coupon rate of 11%. This means the holder expects to receive 11% of the bond's face value in interest annually. Since most bonds have a face value of $1,000, 11% of $1,000 is $110 annually.

The Following Bond Quotation Indicates That the Holder Expects to Receive