Which of the following statements is true of a bond?
A)The maturity value of a bond is always more than the market value of the bond.
B)Interest payments on a bond increase throughout the duration of the bond.
C)The maturity date of a bond is contractually fixed.
D)The call provision of a callable bond is normally exercised in the last year of the bond.
E)The market value of a bond is stated in the bond indenture.

Question

Quizplus · Accepted Answer

The maturity date of a bond is contractually fixed, meaning that it is determined when the bond is issued and does not change. A bond's maturity date is the date on which the issuer of the bond is obligated to pay back the principal (or face value) of the bond to the bondholder.

Which of the Following Statements Is True of a Bond