The ________ is the final amount that will be paid to the holder of a coupon bond.
A)discount value
B)coupon value
C)face value
D)present value

Question

Quizplus · Accepted Answer

The face value is the amount that the bond issuer promises to pay the bondholder at maturity, regardless of the bond's market price or the interest rate environment. It is also known as the par value or principal. The discount value is the difference between the face value and the purchase price of the bond. The coupon value is the interest payment that the bondholder receives periodically until maturity. The present value is the current value of the future cash flows, taking into account the time value of money and the interest rate environment. While all of these terms are important in understanding bond valuation, the face value is the most relevant to the final amount paid to the bondholder.

The ________ Is the Final Amount That Will Be Paid