The principal value of a bond generally is written on the outside cover of the debt contract, so it is sometimes called the:

Question

Quizplus · Accepted Answer

The principal value of a bond is the amount that the issuer of the bond agrees to pay back to the bondholder at a specific point in the future, known as the maturity date. This value is also known as the face value, and is typically printed on the front of the bond certificate. Therefore, the correct choice is (D) face value.

The Principal Value of a Bond Generally Is Written on the Outside