Question

Which statement describes the returns from a bond? A) you can buy at less than face value and get the full value on maturity B) you can either buy or sell depending on the performance of the company C) you usually get payments at regular intervals after age 59.5

Answer 1

A is the answer ................

Answer 2

A) you can buy at less than face value and get the full value on maturity

Explanation:

The correct statement is : A) you can buy at less than face value and get the full value on maturity.

The rate of return of a bond is also known as its yield. The return factors involves bond price, fees, compound interest, inflation etc. A bond will always pay its full face value at maturity.