Vijay purchased a Province of Nova Scotia bond for $1050 The bond will pay $35 interest to Vijay at the end of every six months until it matures in seven years On the maturity date the bond will pay back its $1000 face value (as well as the interest payment due on that date ) What semiannually comp...

The rate of return is the discount rate that mak ...

Vijay purchased a Province of Nova Scotia bond for $1050. The bond will pay $35 interest to

Question:

Vijay purchased a Province of Nova Scotia bond for $1050. The bond will pay $35 interest to Vijay at the end of every six months until it matures in seven years. On the date the bond will pay back its $1000 (as well as the interest payment due on that date.) What semiannually compounded rate of return will Vijay earn during the seven years?
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... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...