A bondholder that owns a $1,000, 10%, 10-year bond has:
A) Ownership rights in the issuing company.
B) The right to receive $10 per year until maturity.
C) The right to receive $1,000 at maturity.
D) The right to receive $10,000 at maturity.
E) The right to receive dividends of $1,000 per year.

Question

Quizplus · Accepted Answer

A bondholder has the right to receive the face value of the bond at maturity, which in this case is $1,000. Ownership rights, dividends, and the other mentioned cash flows are not correct for a bondholder.

A Bondholder That Owns a $1,000, 10%, 10-Year Bond Has