The Par or Face Value of a Debenture Is

question 21

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.
• E) None of the given answers.

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