A deposit Tracker Bond with 100% capital guarantee and a 10% maturity bonus on €100,000 will have a maturity value before tax?

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Prepare for the Qualified Financial Adviser (QFA) Investments Exam 2. Study with flashcards and multiple choice questions, each question has hints and explanations. Master the material and ace your exam!

Multiple Choice

A deposit Tracker Bond with 100% capital guarantee and a 10% maturity bonus on €100,000 will have a maturity value before tax?

Explanation:
The deposit has a 100% capital guarantee, so you recover the original €100,000 at maturity. The maturity bonus is 10% of €100,000, which adds €10,000. Add the two together: €100,000 + €10,000 equals €110,000. Since the question asks for the value before tax, that makes the maturity value €110,000.

The deposit has a 100% capital guarantee, so you recover the original €100,000 at maturity. The maturity bonus is 10% of €100,000, which adds €10,000. Add the two together: €100,000 + €10,000 equals €110,000. Since the question asks for the value before tax, that makes the maturity value €110,000.

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