The specified date on which the principal amount of a bond is repaid is called the bond's:
A) coupon.
B) face value.
C) maturity.
D) yield to maturity.
E) coupon ratE.

Question

Quizplus · Accepted Answer

The specified date on which the principal amount of a bond is repaid is called the bond's maturity. A bond's face value is the amount that the issuer agrees to pay the bondholder at maturity, but it is not the date itself. A coupon is the interest payment that the bond issuer pays to the bondholder periodically, not the date of maturity. Yield to maturity is the total return anticipated on a bond if it is held until it matures, and coupon rate is the annual interest rate that the bond issuer promises to pay the bondholder.

The Specified Date on Which the Principal Amount of a Bond