Which of the following term(s) refer to the principal amount of the bond that the issuing corporation will pay the bondholders on the bond's maturity date?
A)Stated value
B)Par value
C)Maturity value
D)Face value
E)All of these terms could be used.

Question

Quizplus · Accepted Answer

Stated value, par value, maturity value, and face value are all terms that can be used to refer to the principal payment amount that will be payable to bondholders on the maturity date.
Key Takeaway: A bond's principal payment is the amount that is on the face of a bond. It is the amount that is payable to the bondholders by the issuing corporation on the maturity date. Stated value, par value, maturity value, and face value are all used to refer to this amount.

Which of the Following Term(s) Refer to the Principal Amount