Widget Corp. issues a bond with an initial amount of $10000, which is to be repaid in 20 years at an interest rate of 6% per annum. In this scenario, $10000 is the _____ of the bond.

Name: Widget Corp. issues a bond with an initial amount of $10000, which is to be repaid in 20 years at an interest rate of 6% per annum. In this scenario, $10000 is the _____ of the bond.
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Question

Quizplus · Accepted Answer

The $10000 is the principal of the bond, which is the initial amount borrowed that will be repaid at the end of the bond's term.