Which one of the following statements regarding an original issue $25,000 GNMA bond is correct?
A) The investor will receive $25,000 as a principal payment at maturity.
B) The investor will receive fixed quarterly interest payments.
C) The investor will receive the future value of $25,000 at maturity.
D) The investor will receive payments totaling $25,000 over the life of the bond.
E) The investor should receive more than $25,000 but the amount of each payment is unknown in advance.
Correct Answer:
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