The bond obligates the issuing company to pay the par value of the bond at a specific future time. The future time is called the:
A) due date.
B) maturity date.
C) issuing date.
D) payment date.

Question

Quizplus · Accepted Answer

The bond's maturity date is the specific future time when the issuing company is obligated to pay the par value of the bond. Therefore, option B is the correct answer. Option A (due date) and Option D (payment date) are more generic terms and may not necessarily refer specifically to the date on which the bond matures. Option C (issuing date) is the date when the bond is issued, which is irrelevant to the maturity date.

The Bond Obligates the Issuing Company to Pay the Par