Robin is a bondholder in Nacron Corporation, a software company. He receives an interest payment on the bond every year. When the bond reaches maturity, Robin will also receive an additional amount of money. In this case, the money that will be received by Robin when the bond matures is known as the _____.
A) capital gain
B) dividend
C) principal
D) interest income

Question

Quizplus · Accepted Answer

The principal is the original amount of money invested or loaned, which is returned to the bondholder when the bond matures.

Robin Is a Bondholder in Nacron Corporation, a Software Company