The Face Value of a Bond

question 18

Multiple Choice

The Face Value of a bond:

• A)is a special type of long-term interest-bearing note payable issued by a corporation to raise capital.
• B)is the annual interest rate based on face value.
• C)is the amount to be paid on the maturity date of a bond.
• D)is the information on the bond certificate written by the corporation in a formal agreement.

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Definitions:

45-Degree Line

A graphical representation in economics, typically used in Keynesian cross diagrams, showing points where aggregate expenditure equals total output or income.

C Line

A reference in economic models, often representing the consumption function, which shows the relationship between consumption and disposable income.

Disposable Income

The financial scope households possess for spending and saving activities, following income taxes.

APC

The Average Propensity to Consume denotes the percentage of income allocated towards consumption.