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:

Diabetes

A chronic condition characterized by high levels of sugar in the blood due to the body's inability to produce or use insulin effectively.

Graves' Disease

An autoimmune disorder that leads to overactivity of the thyroid gland (hyperthyroidism), causing symptoms such as rapid heart rate, weight loss, and eye bulging.

Senses

The faculties by which the body perceives an external stimulus, including sight, smell, hearing, touch, and taste.

Diabetes

A chronic medical condition where the body either cannot produce enough insulin or cannot effectively use the insulin it produces, leading to high blood sugar levels.