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)
Responses
$406
406 dollars
$6
6 dollars
$206
206 dollars
$200
200 dollars
The bondholder will have received $206 from the bond issuer after the bond has reached its maturity date of one year.
To calculate the total payment received by the bondholder after the bond has reached its maturity date, we need to consider the annual yield.
The annual yield is given as 3%.
The face value of the bond is $200.
To calculate the total amount received, we need to add the face value of the bond to the annual yield.
So the total amount received by the bondholder after the bond has reached its maturity date is $200 + ($200 * 0.03) = $200 + $6 = $206.
Therefore, the correct answer is $206.
To find out how much the bondholder will receive after the bond reaches its maturity date, you need to calculate the total payment which includes both the face value and the yield.
The face value of the bond is given as $200. This means that at maturity, the bondholder will receive $200.
The annual yield is given as 3%. To calculate the yield, you can multiply the face value by the yield percentage: $200 * 0.03 = $6.
Adding the face value and the yield together will give you the total payment: $200 + $6 = $206.
Therefore, the bondholder will have received $206 in payment from the bond issuer after the bond reaches its maturity date.