What Is the Difference Between a Bond's Face Value and Its

question 21

Multiple Choice

What is the difference between a bond's face value and its par value?

• A) The face value is the initial price; the par value is the value at maturity.
• B) The par value is the initial price; the face value is the value at maturity.
• C) The face value is the par value plus the interest on the loan.
• D) The par value is the face value plus the interest on the loan.
• E) There is no difference.

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Definitions:

Categorical Data

Data that can be categorized into groups or categories that are mutually exclusive, without any natural ordering.

Obtaining

The act of acquiring or getting something through effort or request.

VLOOKUP

A function in spreadsheet programs that searches for a value in the first column of a table and returns a value in the same row from a specified column.

Table Range

The difference between the highest and lowest values in a table, often used in data analysis to understand the variability within the data.