When a new bond is issued,when does the bond's par value have to be repaid?
A) When the company files for bankruptcy
B) Before the company goes into default
C) On the maturity date
D) On the issue date
E) When the company makes enough profit to cover the value of the bond

Question

Quizplus · Accepted Answer

The par value of a bond is the amount that is repaid to the bondholder on the maturity date. Therefore, the correct choice is option C, which states that the par value must be repaid on the maturity date. Options A, B, D, and E do not accurately describe when the par value of a bond is due.

When a New Bond Is Issued,when Does the Bond's Par