A Bond's Face Value Can Also Be Called Its

question 40

Multiple Choice

A bond's face value can also be called its:

• A)Coupon payment
• B)Present value
• C)Default value
• D)Par value

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Definitions:

State Bank

A financial institution that is chartered by a state government, as opposed to a national or federal charter.

Securitization

The process of pooling various types of contractual debt such as mortgages or loans and selling them as consolidated financial instruments to investors.

Transferred Receivables

The act of selling accounts receivable to another party, often for the purpose of immediate cash flow improvement.

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation, a creditor relationship with a governmental body or a corporation, or rights to ownership as represented by an option.