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Instructions: Identify the Following Terms

question 128

Short Answer

Instructions: Identify the following terms.
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Definitions:

Face Value

The nominal or dollar value printed on a bond, stock, or other financial instrument, representing the value at issuance and the value to be repaid at maturity.

Zero-Coupon Bond

A financial security that does not pay periodic interest but is sold at a discount from its face value, and the investor receives the face value at maturity.

Maturity

The date when the principal or nominal amount of a financial instrument, such as a bond or loan, becomes due and payable.

Par Value

The nominal or face value of a bond, stock, or coupon as stated by the issuer, typically not related to its market value.

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