An investor purchases a corporate bond with a par value of $1000, a 10-year term,...
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Finance
An investor purchases a corporate bond with a par value of $1000, a 10-year term, and a coupon rate of 7%. If this investor plans to hold this bond until the maturity date, how much can the investor expect to earn yearly?
a) 7% + the prime rate
b) The prime rate
c) $1000, or the face value
d) The current federal treasury rate
e) 7% coupon rate
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