The _________Value of a Bond Is Also Called Its Face

question 27

Multiple Choice

The _________value of a bond is also called its face value. Bonds which sell at less than face value are priced at __________, while bonds which sell at greater than face value sell at __________.

• A) premium; a discount; par
• B) par; a discount; a premium
• C) coupon; a premium; a discount
• D) discount; par; a premium

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Definitions:

Mortgage Holder

The individual or financial institution that lends money to a borrower for the purchase of real estate, holding the property as collateral.

Note Payable

A financial obligation or loan documented by a written promissory note specifying the principal amount, interest rate, and terms of repayment.

Liquidated

Refers to the process of settling debts by selling off assets.