Which of the Following Is True About the Face Value

question 80

Multiple Choice

Which of the following is true about the face value of a bond?

• A) It is the notional amount we use to compute coupon payments.
• B) It is the amount that is repaid at maturity.
• C) It is usually denominated in standard increments, such as $1,000.
• D) All of the above are true.

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Definitions:

Retained Earnings

The cumulative earnings of a company that have not been distributed to shareholders as dividends, reinvested back into the company.

Unearned Revenue

Money received by a company from a customer for products or services to be delivered or performed in the future.

Prepaid Rent

Prepaid rent refers to payments made in advance for rent, recorded as an asset on the balance sheet until it is consumed or the rental period elapses.

Notes Payable

Financial obligations or loans evidenced by promissory notes that a company or individual owes and is required to pay in the future.