If a Coupon Bond Has a "Face Value" of $1000

question 53

Multiple Choice

If a coupon bond has a "face value" of $1000, it means that:

• A) the original purchaser paid $1000 for it.
• B) each purchaser must pay $1000 for it.
• C) it was purchased for at least $1000 and perhaps more.
• D) the holder will be paid $1000 when the bond matures.
• E) the holder will be paid $1000 plus accumulated interest when the bond matures.

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