Companies that issue bonds are required to pay the face value of the bonds at maturity and to make fluctuating periodic interest payments based on the market rate of interest.

Question

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Companies that issue bonds are required to pay the face value of the bonds at maturity and to make periodic interest payments (coupon payments) based on a fixed rate of interest agreed upon at the issuance of the bonds, not a fluctuating market rate.

Companies That Issue Bonds Are Required to Pay the Face