Respuesta :
Answer:
The amount to be paid is $100,440
Explanation:
When the bond matures, it is the due date on which the bond issuer need to pay off the bond on that particular date.
In this case, the bond matures in 2028, so
Interest amount = Face value of bond × Price × Interest
= $1,000 × 93 × 8%
= $7,440
The amount to be paid on maturity will be:
= $7,440 + $93,000
= $100,440
The amount to be paid on maturity is $100,440
Given that;
Purchase value of 8% corporate bond at 93 = $1,000
Find:
The amount to be paid on maturity
Computation:
Interest amount = Face value of bond × Price × Interest
Interest amount = $1,000 × 93 × 8%
Interest amount = $7,440
The amount to be paid on maturity = $7,440 + $93,000
The amount to be paid on maturity = $100,440
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