A bond has a face value of $300 and a coupon rate of 6% p.a., with coupon payments made four times a year. How much cash will be paid to the holder of one of these bonds on the bond's maturity date? Select one: a. $304.50 b. $318 c. $300 d. $4.50

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter12: Investing In Stocks And Bonds
Section: Chapter Questions
Problem 6FPE
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A bond has a face value of $300 and a coupon rate of 6% p.a., with coupon payments made four times a year. How much cash will be paid to the holder of one of these bonds on the bond's maturity date?

Select one:
a.

$304.50

b.

$318

c.

$300

d.

$4.50

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