Asked by
Trixcel Baraoidan
on Dec 02, 2024
Verified
The amount the issuer intends to borrow at the coupon rate of interest is generally the:
A) par value.
B) face value.
C) present value.
D) Both a and b
E) None of the above
Par Value
The nominal or face value of a bond, share of stock, or coupon as indicated on a bond or stock certificate. It is a static value determined at the time of issuance.
Face Value
The nominal value stated on a financial instrument, such as a bond or stock certificate.
Present Value
The current economic value of a future financial sum or sequence of inflows, determined by a particular rate of return.
- Identify the elements influencing the market value and returns of bonds prior to their maturity.
Verified Answer
SK
Learning Objectives
- Identify the elements influencing the market value and returns of bonds prior to their maturity.