The issue price of a debenture-whether it is sold at par,premium or discount-has no effect on the required principal repayment at maturity.

Name: The issue price of a debenture-whether it is sold at par,premium or discount-has no effect on the required principal repayment at maturity.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The principal repayment at maturity is based on the face value of the debenture, which remains the same regardless of whether it was sold at par, premium, or discount.

The Issue Price of a Debenture-Whether It Is Sold at Par,premium