The Par Value of a Bond Is

question 89

Multiple Choice

The par value of a bond is:

• A) the value of the bond at maturity plus the price of the bond at purchase.
• B) the value of the bond at maturity minus the price of the bond at purchase.
• C) the price of the bond at purchase.
• D) the value of the bond at maturity; the amount due at repayment.
• E) the price of the bond at purchase minus the face value of the bond.

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Definitions:

Always Decrease

A scenario where a variable or condition consistently declines over a period of time without increasing.

Marginal Cost

The cost associated with producing one additional unit of a product, emphasizing the incremental expense in production processes.

Additional Unit

The next unit of product or service that is being considered for production or consumption.

Marginal Cost

Incremental expense incurred from the production of one additional unit of a good.