A bond is sold at a face value of $200 with an annual yield of 3% . How much will the bondholder have received in payment from the bond issuer after the bond has reached its maturity date of one year?(1 point)

Question

Responses

$200
200 dollars

$6
6 dollars

$206
206 dollars

$406

Answer 1

$206

Explanation:
At a 3% annual yield, the bondholder will receive 3% of the face value of $200, which is $6 per year. After one year, the bondholder will have received the $200 face value plus the $6 annual yield payment, totaling $206.