The amount returned to the investor at the maturity date when the bond is due is called

Question

Quizplus · Accepted Answer

The principal refers to the original amount invested in the bond, and it is the amount that will be returned to the investor at the maturity date when the bond is due. The interest gain refers to the earnings accrued by the bondholder during the time they held the bond, while the capital gain refers to a profit earned by selling a bond at a price higher than its purchase price, which may or may not be applicable in this scenario. Terminal value is not a common term used in relation to bonds.

The Amount Returned to the Investor at the Maturity Date