Fred purchases a bond, newly issued by the Big Time Corporation, for $10,000. The bond pays $400 to its holder at the end of the first, second, and third years and pays $10,400 upon its maturity at the end of four years. The principal amount of this bond is ________, the coupon rate is ________, and the term of this bond is ________.

A. $10,000; 4%; four years
B. $10,000; $400; 4%
C. $400; 40%; four years
D. $10,400; 4%; four years

Answer: A

Economics

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