Leah, a longtime stock market investor, is thinking about investing in a new bond. This bond has a date of maturity in 30 years. What happens on the date of maturity? (1 point) Responses Leah earns back the initial cost of the bond. Leah earns back the initial cost of the bond. The bond doubles in value. The bond doubles in value. Leah earns back the initial cost of the bond plus any annual interest. Leah earns back the initial cost of the bond plus any annual interest. Leah earns back a percentage of the bond’s annual interest. Leah earns back a percentage of the bond’s annual interest.
1 answer
On the date of maturity, Leah earns back the initial cost of the bond plus any annual interest. This means she will receive the principal amount she invested in the bond (the face value) along with any interest that has accumulated over the life of the bond. Therefore, the correct response is:
Leah earns back the initial cost of the bond plus any annual interest.
