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)
• $200
• $6
• $406
• $206
The bond has a face value of $200 with an annual yield of 3%. This means that the bondholder will receive 3% of the face value annually.
To calculate the annual payment from the bond issuer, we multiply the face value by the yield:
$200 * 3% = $6
Therefore, the bondholder will receive $6 in payment from the bond issuer after the bond has reached its maturity date of one year.
The correct answer is:
• $6