Final answer:
Investors who hold a $100,000 bond issued at an 8% contract rate until maturity will receive $100,000, regardless of the bond's initial selling price.
Step-by-step explanation:
A $100,000 bond issue with a contract rate of 8% that sold at 97 will pay investors the face value of the bond at maturity. This means that they will receive $100,000 at the bond's maturity, regardless of the price at which the bond was sold initially.
The price at which the bond sells (in this case, 97% of the face value) does not affect the amount to be repaid; it only reflects the bond's yield relative to the market interest rates at the time of the sale. When the bond matures, the investor receives the full face value of the bond, not the discounted purchase price.