Consider a Two-Year Coupon Bond That Has a Present Value

question 49

Multiple Choice

Consider a two-year coupon bond that has a present value of $10,000.If the annual rate of discount is 3 percent, and the payment made at the end of each year is $250, the principal amount to be repaid at the end of two years is

• A)$10,101.50.
• B)$10,300.00.
• C)$13,333.33.
• D)$13,583.33.