The exact date when the issuing firm must repay the principal to a bondholder is known as the bond's _____ date.

Question

Quizplus · Accepted Answer

The bond's maturity date is the exact date when the issuing firm must repay the principal to a bondholder, making choice B the correct answer. The coupon is the interest payment made to bondholders at regular intervals, the ex-dividend date applies to stocks and determines which shareholders are entitled to receive the next dividend payment, and the conversion date is the date by which a convertible bond can be converted into stock.

The Exact Date When the Issuing Firm Must Repay the Principal