The date on the face of a bond telling when the face value is to be repaid is called the
A) date of issuance.
B) maturity date.
C) dividend declaration date.
D) discount rate.
E) date of record.

Question

Quizplus · Accepted Answer

The maturity date is the date on the face of the bond that tells when the face value is to be repaid to the bondholder. Choice A, the date of issuance, is the date when the bond is first sold to investors. Choice C, the dividend declaration date, is relevant for stocks, not bonds. Choice D, the discount rate, is the rate used to calculate the present value of future cash flows. Choice E, the date of record, is the date by which an investor must be on the company's record as a shareholder to receive a dividend.

The Date on the Face of a Bond Telling When