1.The amount that a borrower must pay back to the bondholders on the maturity date is...
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.
Homework Answers
| 1 |
| The amount that a borrower must pay back to the bondholders on the maturity date is the principal. |
| Option A principal is correct |
| 2 |
| If the market rate of interest is greater than the bond's stated rate of interest, the bond will be issued at a discount. |
| Option A a discount is correct |
| 3 |
| If the market rate of interest is less than the bond's stated rate of interest, the bond will be issued at a premium. |
| Option A a premium is correct |
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