Which of the following is the amount the borrower must pay back to the bondholders?
A) Market value
B) Present value
C) Stated interest value
D) Principal amount

Question

Quizplus · Accepted Answer

The principal amount is the amount that the borrower must pay back to the bondholders at maturity, it represents the face value of the bond. The market value represents the current trading price of the bond in the market, which can be higher or lower than the principal amount depending on market conditions. The present value represents the current value of the future cash flows from the bond, while the stated interest value represents the annual interest payments promised by the borrower.

Which of the Following Is the Amount the Borrower Must