Question 1
The ________ is the amount returned to the investor at the maturity date when the bond is due.
◦ principal
◦ interest gain
◦ capital gain
◦ terminal value
Question 2
Which of the following is
not
always a true statement?
◦ The par value of a bond is its face value.
◦ The par value of a bond is its market value.
◦ The par value of a bond will be paid to the bondholder at maturity.
◦ The par value multiplied by the coupon rate equals the interest paid to investors annually.