SIE Exam Question 503: Answer and Explanation

Question: 503

An investor holding an 8% subordinated debenture will receive how much at maturity?

• A. Depends on the purchase price.
• B. $1,080.
• C. $1,040.
• D. $1,000.

Correct Answer: C

Explanation:

C: An investor who has purchased an 8% corporate bond will receive the principal payment plus the last semiannual interest payment at maturity for a total of $1,040.