The price of a debt instrument is quoted as a percentage of its
A) face or par value.
B) fair market value.
C) book value.
D) present value.

Name: The price of a debt instrument is quoted as a percentage of its A) face or par value. B) fair market value. C) book value. D) present value.
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Question

Quizplus · Accepted Answer

The face or par value is the original amount of principal on which interest payments are based and serves as the basis for the calculation of the price of the debt instrument.

The Price of a Debt Instrument Is Quoted as a Percentage