Question: Rhonda purchased a 1 0 % , zero - coupon bond with a 5 - year maturity and a $ 3 0 comma 0 0

Rhonda purchased a
10
%,
zero-coupon bond with a
5
-year
maturity and a
$30 comma 000
par value
5
years ago. The bond matures tomorrow. How much will Rhonda receive in total from this investment, assuming all payments are made on these bonds as expected?
Question content area bottom
Part 1
(Select the best choice below.)
A.
Rhonda will receive the last interest payment of
$3 comma 000
plus the principal repayment of
$30 comma 000
.
B.
Rhonda will receive the last interest payment of
$3 comma 000
.
C.
Rhonda will receive the
$30 comma 000
which represents the principal and accrued interest on the bond during its lifetime.
D.
Rhonda will receive the market price of the bond, which depends on the market interest rate tomorrow.

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