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Anna007 [38]
4 years ago
15

50 POINTS!!!!Arthur buys a zero coupon bond with a face value of $5,000 for $4,000. The bond has five years until it matures. Ho

w much would Arthur earn if he holds this bond to maturity?
$2,000
$1,000
$6,000
$7,000
Mathematics
2 answers:
snow_tiger [21]4 years ago
7 0

A zero coupon bond is a type of bond that is sold below its face value but pays no interest. At maturity, Arthur will be able to have $5,000 but he paid $4,000 for it. Therefore, he was able to earn $1,000 ($5,000 - $4,000) from the bond.

madreJ [45]4 years ago
3 0
$6000 is correct this is easy
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