Which of the following statements is true of a bond?

Question

Quizplus · Accepted Answer

The maturity date of a bond is contractually fixed, meaning that it is specified in the bond indenture and cannot be changed. A bond's maturity value is the amount that the bond issuer will pay to the bondholder when the bond reaches its maturity date. The market value of a bond can fluctuate based on changes in interest rates, credit rating of the issuer, and other factors. Interest payments on a bond are usually fixed and do not increase throughout the duration of the bond. The call provision of a bond allows the issuer to redeem the bond before its maturity date, and can be exercised at any time during the life of the bond. The market value of a bond is not mentioned in the bond indenture as it can change over time.

Which of the Following Statements Is True of a Bond