A $1,000, 8% bond sells for 980. $1,000 is called the ________.

Name: A $1,000, 8% bond sells for 980. $1,000 is called the ________.
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Question

Quizplus · Accepted Answer

The par value is the face value or the principal amount of the bond that is typically paid back to the holder at maturity. In this case, the bond has a par value of $1,000. The market value is the current price at which the bond is being traded, which in this case is $980. The current value and auction value are not relevant to the given information.

A $1,000, 8% Bond Sells for 980