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6 February, 10:59

If you were to purchase a capital appreciation bond from the local school district, how would your investment be paid back?

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  1. 6 February, 11:27
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    principal and interest payments upon bond maturity.

    Explanation:

    Based on the information provided within the question it can be said that your investment would be payed back on principal and interest payments upon bond maturity. A capital appreciation bond is a municipal security which is reinvested at a stated rate, and once the maturity date is reach, only then can it be redeemed for it's face value plus all of the accrued interest. These bonds usually take between 10-20 years to mature.
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