Question
In: Finance
If you own a 10000 bond with a coupon rate of 10%, how much cash flow...
If you own a 10000 bond with a coupon rate of 10%, how much cash flow will you receive on the maturity date?
|
500 |
||
|
10500 |
||
|
1000 |
||
|
9900 |
||
|
11000 |
Solutions
Expert Solution
The cash flow is computed as follows:
= Par value x coupon rate + Par value
= 10000 x 10% + 10000
= 1000 + 10,000
= 11000
jeff jeffy answered 2 years agoRelated Solutions
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