Bonds,with the same face value,issued at a premium will:
A)Have a greater maturity value than a bond issued at a discount.
B)Have a lesser maturity value than a bond issued at a discount.
C)Have the same maturity value as a bond issued at a discount.
D)Have a different maturity value than a bond issued at a discount,depending upon the interest rate and maturity date.

Question

Quizplus · Accepted Answer

The maturity value of a bond is determined by its face value, not by whether it is issued at a premium or a discount. Both types of bonds will have the same maturity value, which is the face value of the bond.

Bonds,with the Same Face Value,issued at a Premium Will