Question: Rhonda purchased a 1 5 % , zero - coupon bond with a 1 2 - year maturity and a $ 1 5 , 0
Rhonda purchased a zerocoupon bond with a year maturity and a $ par value 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?
Select the best choice below.
A Rhonda will receive the last interest payment of $ plus the principal repayment of $
B Rhonda will receive the last interest payment of $
C Rhonda will receive the $ 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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