What will a bond be worth on the day it matures? Group of answer choices $0 $100 its face value (plus remaining coupon, if applicable) its remaining coupon, if applicable

Question

Business

Heidy Keith

20 May, 03:28

What will a bond be worth on the day it matures? Group of answer choices $0 $100 its face value (plus remaining coupon, if applicable) its remaining coupon, if applicable

+3

Answers (1)

Know the Answer?

Rylan Burton · Answer 1

Answer: Its face value (plus remaining coupon

Explanation:

On the day a bond matures it is to be paid back to the investors therefore it will be at it's face value to reflect the amount owed to investors. The last coupon may still have to be paid so it also be added to the bond on this date.

For example, if a bond is issued at $100 face value and will. mature in 5 years but is currently trading at $95, at the end of the 5th year it will be trading at $100 because that it what the Issuer of the bond will pay back.