The Par Value of a Bond Is

question 1

Multiple Choice

The par value of a bond is

• A) the amount originally paid for the bond.
• B) the amount that will be repaid at maturity date.
• C) all of the above.
• D) none of the above.

---

Definitions:

Portfolio

An assortment of investments including stocks, bonds, commodities, cash and equivalents, along with closed-end funds and ETFs (exchange traded funds).

Market Risk Premium

The additional return an investor expects from holding a risky market portfolio instead of risk-free assets.

Expected Inflation

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling, as anticipated by consumers, businesses, and investors.

Required Return

The minimum rate of return on an investment that investors expect to compensate them for the level of risk.