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Assume You Bought a $1000 Par-Value Bond in 2004 for 85

Question 83

Multiple Choice

Assume you bought a $1000 par-value bond in 2004 for 85 1/4 with an interest rate of 4.7%.If you held the bond until maturity in 2014,what would be the total amount that you would earn on this bond?


A) $1000.00
B) $852.50
C) $617.50
D) $470.00
E) The amount cannot be calculated given the information provided.

Correct Answer:

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