The face value of a bond is
A) the dollar amount that a person would receive if he or she were to sell the bond.
B) the dollar amount that a person would receive if he or she were to buy the bond.
C) the total value of payments that will be made over the course of the bond's life.
D) the dollar amount of the bond's final payment at maturity.

Question

Quizplus · Accepted Answer

The face value of a bond, also known as its par value, is the dollar amount of the bond's final payment at maturity. This is the amount that the bond issuer promises to pay the bondholder at the end of the bond's term. It is not the amount that the bond can be sold or purchased for on the secondary market.

The Face Value of a Bond Is