On the Bond's Maturity Date, Its Face Value Will Equal

question 28

Multiple Choice

On the bond's maturity date, its face value will equal the:

• A) maturity value plus all interest payments.
• B) maturity value less all interest payments.
• C) present value of the bonds on its issuance date.
• D) maturity value.

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Definitions:

Monthly Payments

Regular payments made once a month, often related to loans or leases.

Loan Payment

A specified amount of money an borrower must pay to a lender at regular intervals as repayment for borrowing money.

Future Value

The predicted amount of money that an investment will grow to at a specified future date, based on an assumed rate of growth.

Interest Rate

A lender's price to a borrower for the asset's usage, quantified as a percentage of the main sum.