Multiple Choice

An investor purchases a 5-year corporate bond with a face value of $1,000 and a 3% annual coupon. When explaining the investment to a friend, the investor states, 'This is a great investment. In five years, the corporation will pay me back my $1,000.' Which critical component of the payments received from the issuer has the investor failed to mention in their explanation?

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Updated 2025-08-21

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