Multiple Choice
Consider a bond you buy for $5,000, which pays you $250 a year for 5 years, and then pays back the $5,000. The face value of the bond is , the is $250, and the maturity is .
A) $250; coupon payment; 5 years
B) $5,000; coupon payment; 5 years
C) $5,000; face value; 1 year
D) $5,000; coupon payment; 1 year
Correct Answer:
Verified
Correct Answer:
Verified
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