Arthur buys a zero coupon bond with a face value of $5,000 for $4,000. The bond has five years until it matures. How much would Arthur earn if he holds this bond to maturity?

Select the best answer from the choices provided.
A.
$2,000
B.
$1,000
C.
$6,000
D.
$7,000
Answer my question N i Gotchu on 50 cent

Question

Arthur buys a zero coupon bond with a face value of $5,000 for $4,000. The bond has five years until it matures. How much would Arthur earn if he holds this bond to maturity?

Select the best answer from the choices provided.
A. 
$2,000
B. 
$1,000
C. 
$6,000
D. 
$7,000
Answer my question N i Gotchu on 50 cent

jhonyy9 · Answer

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