The Par or Face Value of a Debenture Is

question 10

Multiple Choice

The par or face value of a debenture is:

• A) the amount that debenture holders will receive on maturity of the debenture.
• B) the amount that a debenture holder would be prepared to pay for a debenture when the coupon rate is below the interest rate the debenture holder considers appropriate.
• C) the amount debenture holders will receive annually until the debenture matures.
• D) the amount that a debenture holder would be prepared to pay for a debenture when the coupon rate is above the interest rate the debenture holder considers appropriate.

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Definitions:

Intervening Cause

An event or factor occurring after a party's initial act that significantly contributes to an outcome or event, potentially absolving the original actor of liability.

Proximate Causation

A principle in law that establishes the legal cause of an event based on the foreseeability of the harm and a direct relation to the injury.

Actual Causation

The fact-based determination that a defendant's action was the direct cause of the plaintiff's injury.

But-For Causation

A principle in law that determines causality by asking whether the harm would not have occurred but for the defendant's actions.