Answer:
Explanation:
Purchase of a bond is an investment. Interest paid every six months is known as a coupon payment.
Profit or loss = (Income from sale + coupons)- original price
In 18 months, the investor would receive income from the sale of the bond($9,500) in addition to the three-six month coupons payments amounting to = $300 * 3 = $900
Profit or loss = ($9,500 +$900) - $10,000
Profit or loss = $10,400 - $10,000
Profit = $400
