Consider a $5000 face value Province of Quebec strip bond from the issue in Table 8.3 that

Question:

Consider a $5000 Province of Quebec strip bond from the issue in Table 8.3 that matures on December 1, 2018. If the yield does not change as years go by, what will be the bond’s value on:
a. December 1, 2012?
b. December1,2014?
c. December 1, 2016?
Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...