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

$6
6 dollars

$206
206 dollars

$406
406 dollars

$200

Answer 1

To calculate how much the bondholder will receive at the bond's maturity date, we need to consider the face value of the bond and the yield.

The bond has a face value of $200 and an annual yield of 3%. The yield represents the interest that the bondholder will receive.

First, calculate the interest payment:

• Interest = Face Value × Yield
• Interest = $200 × 0.03 = $6

At the maturity date, the bondholder will receive the face value of the bond plus the interest earned.

Total amount received = Face Value + Interest Total amount received = $200 + $6 = $206

Therefore, the bondholder will receive $206 after the bond has reached its maturity date of one year.

Answer: $206