When a New Bond Is Issued,when Does the Bond's Par

question 65

Multiple Choice

When a new bond is issued,when does the bond's par value have to be repaid?

• A) When the company files for bankruptcy
• B) Before the company goes into default
• C) On the maturity date
• D) On the issue date
• E) When the company makes enough profit to cover the value of the bond

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Definitions:

Penalty Clause

A contractual provision that imposes a financial penalty on a party for a breach of contract or failure to meet specific terms.

Better Title

A legal principle indicating that among multiple claims to ownership or rights, one claim is superior or more legally valid than the others.

Goods

Tangible personal property, often referred to in the context of buying, selling, or trading physical items.

Commercially Reasonable

Actions or procedures that a prudent person would believe to be appropriate and reasonable in the context of conducting business.