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:

Adjustment

A modification made to accounts, financial statements, or records to ensure their accuracy and compliance with financial reporting standards.

Put Option

A contractual financial agreement that allows the owner the option, but not the requirement, to dispose of a predetermined quantity of a particular asset for a fixed price during a defined period.

Specific Price

A precise valuation or cost assigned to a good, service, or asset in a specific transaction or scenario.

Specific Stock

Refers to the individual securities or shares issued by a company, representing ownership in that company.