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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. How much would Arthur earn if he holds this bond to maturity?

$2,000
$1,000
$6,000
$7,000

User MAdEfACr
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2 Answers

2 votes
$6000 is correct this is easy
User TTCC
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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.

User Sedat Kapanoglu
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