The Face Value of a Bond Is

question 29

Multiple Choice

The face value of a bond is:

• A) the value of the bond at maturity plus the price of the bond at purchase.
• B) the value of the bond at maturity minus the price of the bond at purchase.
• C) the price of the bond at purchase.
• D) the value of the bond at maturity; the amount due at repayment.
• E) the price of the bond at purchase minus the face value of the bond.

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Definitions:

Proximately Caused

Refers to an event sufficiently related to a legally recognizable injury to be held as the cause of that injury.

Horizontal Privity

A legal term referring to the relationship between parties with coordinating interests in a property, often in lease agreements.

Vertical Privity

A legal concept relating to the chain of ownership or rights that exist in contracts, specifically in property law and warranties, where obligations are passed down.

Privity Of Contract

A doctrine which states that contracts are binding only upon the parties who enter into them, and only these parties have the right to sue to enforce their terms.