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:

Journal Entry

A record in accounting that logs the debit and credit parts of a transaction in the financial records of a company.

Journal

A record where all financial transactions are initially recorded, using debits and credits, before being posted to individual accounts.

Increase Side

Refers to the side (debit or credit) of an account that is used to increase its balance, varying by account type.

Normal Balance

The side (debit or credit) on which increases are recorded in an accounting ledger; varies depending on the account type (asset, liability, equity, revenue, or expense).