Value generally promises to pay at maturity date and a firm borrows is considered as bond's__________?
Correct answer: D. Par value
- A. Bond value
- B. Per value
- C. State value
- D. Par value
Explanation
Par value is the face value that the issuing firm promises to repay to the bondholder at maturity. It is different from the bond's current market value, which fluctuates with interest rates and risk.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
Practise Business Finance
975 free Business Finance MCQs from Management Sciences, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Management Sciences questions like this
Management Sciences is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Business Finance questions
Bonds issued by government and backed by Pak government are classified as_________?
An increasing in interest rate leads to decline in value of__________?
Coupon rate of bond is also called____________?
Maturity date decides at time of issuance of bond and legally permissible is classified as____________?
Bonds issued by local and state governments with default risk are____________?
Bond that has been issued in very recent timing is classified as_______?