Zencorp issues a bond with an initial amount of $8000 and a maturity date of 12 years at an interest rate of 7% per annum. Given this scenario, which of the following statements is true?

Question

Quizplus · Accepted Answer

The statement that Zencorp is due to repay $8000 by the end of 12 years is true because the principal amount of the bond, which is $8000, is typically repaid at the maturity date, regardless of the interest payments made over the life of the bond.

Zencorp Issues a Bond with an Initial Amount of $8000