Which of the Following Is True About the Face Value

question 66

Multiple Choice

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

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

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Definitions:

Transfer Warranty

A legal guarantee by the seller that they have the right to transfer a title and that the title is free from any lien or encumbrance not disclosed in the contract.

Jones V.Wells Fargo Bank, N.A.

A legal case involving allegations against Wells Fargo Bank regarding its mortgage practices.

Conversion

The unauthorized act of taking someone else's property and converting it into one's own use, which infringes on the legal rights of the owner.

Promissory Note

A financial instrument that contains a written promise by one party to pay another party a specific sum of money either on demand or at a specified future date.