A Bond's Principal Value Is Also Referred to as the Maturity

question 104

Multiple Choice

A bond's principal value is also referred to as the maturity value because:

• A)it is always repaid at a discount prior to the bond's maturity.
• B)it is written on the face of the debt contract.
• C)it is repaid at the maturity date.
• D)it is added to interest payments that are repaid at the maturity date.
• E)it is issued at a value below par value to generate a positive capital gain.

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