Bert Owns a Bond That Will Pay Him $45 Each

question 97

Multiple Choice

Bert owns a bond that will pay him $45 each year in interest plus $1,000 as a principal payment at maturity. What is the $1,000 called?

• A) Coupon
• B) Face value
• C) Discount
• D) Yield
• E) Dirty price

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Definitions:

Shareholder-Managers

Individuals who both own shares in a company and actively manage its operations or participate in strategic decision-making.

Personal Credit Card Bills

Statements issued to credit card holders outlining transactions, payments due, and other account activity for a billing cycle.

Annual Report

A comprehensive report on a company's activities, financial performance, and strategy, provided yearly to shareholders and the public.

Corporation

A legal entity that is separate and distinct from its owners, offering limited liability to its shareholders, and having the ability to own property, sue, and be sued.