Which One of the Following Statements Regarding an Original Issue

question 70

Multiple Choice

Which one of the following statements regarding an original issue $25,000 GNMA bond is correct?

• A)The investor will receive $25,000 as a principal payment at maturity.
• B)The investor will receive fixed quarterly interest payments.
• C)The investor will receive the future value of $25,000 at maturity.
• D)The investor will receive payments totaling $25,000 over the life of the bond.
• E)The investor should receive more than $25,000 but the amount of each payment is unknown in advance.

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Definitions:

Domestic Investment

The total investment in capital assets (such as factories, machinery, and technology) within a country's borders, contributing to the nation's economic growth.

Euro

The official currency of the eurozone, which is used by 19 of the 27 European Union countries.

Net Exports

The value of a country's total exports minus its total imports, measuring the net trade of goods and services with other economies.

Nominal Exchange Rate

The rate at which one country's currency can be traded for another country's currency.