The par or face value of a debenture is:
A) the amount that debenture holders will receive on maturity of the debenture.
B) the amount that a debenture holder would be prepared to pay for a debenture when the coupon rate is below the interest rate the debenture holder considers appropriate.
C) the amount debenture holders will receive annually until the debenture matures.
D) the amount that a debenture holder would be prepared to pay for a debenture when the coupon rate is above the interest rate the debenture holder considers appropriate.

Question

Quizplus · Accepted Answer

The par or face value of a debenture is the amount that debenture holders will receive on maturity of the debenture. This is the nominal or original amount that the debenture was issued for, and is usually the amount that must be repaid to the debenture holders when the debenture matures.

The Par or Face Value of a Debenture Is