A 4%, $10,000, 30-year bond will produce for the owner a series of 30 annual payments of $400 from the issuer of the bond and a one-time payment of $9,600.

Question

Quizplus · Accepted Answer

A 4%, $10,000, 30-year bond will produce annual interest payments of $400 (4% of $10,000) for 30 years, but the one-time payment at the end will be $10,000, not $9,600, as bonds typically repay the principal amount at maturity.

A 4%, $10,000, 30-Year Bond Will Produce for the Owner