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A Bond's Principal Value Is Also Referred to as the Maturity

Question 33

Multiple Choice

A bond's principal value is also referred to as the maturity value because:


A) it is always repaid at a discount prior to the bond's maturity.
B) it is written on the face of the debt contract.
C) it is repaid at the maturity date.
D) it is added to interest payments that are repaid at the maturity date.
E) it is issued at a value below par value to generate a positive capital gain.

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