The issue price of a bond-whether it is sold at par,premium,or discount-has no effect on the required principal repayment at maturity.

Question

Quizplus · Accepted Answer

The required principal repayment at maturity is determined by the face value of the bond, which is stated in the bond contract and does not change based on the issue price or whether the bond is sold at par, premium or discount. The issue price may affect the interest payments and yield to maturity, but not the required principal repayment.

The Issue Price of a Bond-Whether It Is Sold at Par,premium,or