A Bond Has a Maturity Value of $500,000 Payable in 3

question 104

Multiple Choice

A bond has a maturity value of $500,000 payable in 3 years. These bonds have a 5% coupon rate payable annually, and the market yield was 2% when the bonds were purchased. How much will be recorded for the bond purchase (rounded) ?

• A)$43,257
• B)$543,257
• C)$500,000
• D)$500,001

---

Definitions:

Trumpet

A brass wind instrument with a flared bell and three buttons (valves) that is commonly used in classical and jazz music.

Pyrotechnics

The art, craft, or science of making and using fireworks or related explosive devices for entertainment, military, or industrial purposes.

Fourth of July

A U.S. holiday commemorating the Declaration of Independence of the United States, on July 4, 1776.

Pyrotechnics

The art and science of making fireworks, including the design and manufacture of devices that produce light, sound, and smoke for entertainment purposes.