The face amount of a bond is the amount the borrower must pay at the
ANSWER: Maturity date
EXPLANATION:
I bond has a maturity date on which the face amount or principal amount of the bond is repaid back.
The face amount of a bond is the amount the borrower must pay at the
The face amount of a bond is the amount the borrower must pay at the Group of answer choices none of the other answers are correct date of each interest payment amount the borrower must pay no matter what the interest rate maturity date
1.The amount that a borrower must pay back to the bondholders on the maturity date is the: A.principal. B.interest. C.stated value. D.market value. 2.If the market rate of interest is greater than the bond's stated rate of interest, the bond will be issued at: A.a discount. B.maturity value. C.par. D.a premium. 3.If the market rate of interest is less than the bond's stated rate of interest, the bond will be issued at: A.a premium. B.maturity value. C.a discount. D.par.
When a company purchases a bond with face amount $1,000, it may pay more or less than $1,000. Explain why the price can be different from the face amount and what is a premium or discount. By the time the bond matures, the company is paid back $1,000. Explain how the premium (or discount) is amortized. Identify and explain the three types of classifications for investments in debt securities. How unrealized holding gains and losses should be reported for each?...
What must a borrower pay each year on an $18,000,000 loan at 10% annual interest if the loan is to be amortized over 25 years?
On January 1, 2020, a borrower signed a long-term note, face amount, $40,000; time to maturity, three years; stated rate of interest, 8%. The market rate of interest of 10% determined the cash received by the borrower. The note will be paid in three equal annual installments of $15,521 each December 31 (which is also the end of the accounting period for the borrower). Required a. Compute the cash received by the borrower and prepare a debt amortization schedule. Note:...
QUESTION 5 A prepayment penalty requires the borrower to pay the total amount of interest that would be owed to the lender for the full term of the loan, even if the loan is paid off early, True False
Under today’s rules an FHA borrower must pay an up-front insurance premium and an annual premium. true false
D) The bond will be issued at par 7. Which of the following is the amount the borrower must pay back to the bondholders? A) Market value B) Present value C) Stated interest value D) Principal amount 8. Which of the following describes the term maturity date? Tida
On 1 January 20X9, a borrower signed a long-term note, face amount, $2,150,000; time to maturity, three years; stated rate of interest, 2%. The effective rate of interest of 6% determined the cash received by the borrower. The principal of the note will be paid at maturity; stated interest is due at the end of each year. (PV of $1, PVA of $1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided.) Required: 1. Compute the cash received...
please answer the following multiple choice Which of the following is the amount the borrower must pay back to the bondholders? 7 A) Market value B) Present value C) Stated interest value D) Principal amount 8. Which of the following describes the term maturity date? A) The date on which each interest payment is made B) The date on which the bond is issued C) The date on which the principal amount is repaid to the bondholder D) The date...