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What is the connection between a bond principal and interest?
The bond principal is the initial amount borrowed by the issuer, while the interest is the payment made by the issuer to the bondholder for the use of the principal. The interest is usually a fixed percentage of the principal amount and is paid at regular intervals until the bond matures.
What is a gold bond certificate?
A gold bond certificate is a document issued by a government or company that represents a loan taken out by the bondholder to the issuer. The certificate specifies the terms of the loan, including the principal amount, interest rate, and maturity date. Once the bond matures, the issuer repays the principal amount to the bondholder.
Which of these is an element of a bond Business?
An element of bond business is a face value similar to the principal amount of loan.
What is the purchase price of a bond called?
The purchase price of a bond is called the "face value" or "par value" of the bond. This is the amount that the bond issuer agrees to repay the bondholder at maturity.
What is it called when the day a bond or other obligation is due to be paid?
The day a bond or other obligation is due to be paid is called the maturity date. This is the date on which the issuer of the bond is obligated to repay the principal amount to the bondholder.
What is the payment made when a bond matures?
The payment made when a bond matures is the face value of the bond, which is the original amount borrowed by the issuer.
What is the connection between a bond principal and interest?
The bond principal is the initial amount borrowed by the issuer, while the interest is the payment made by the issuer to the bondholder for the use of the principal. The interest is usually a fixed percentage of the principal amount and is paid at regular intervals until the bond matures.
What is the sale amount of a bond called?
The sale amount of a bond is called the face value or par value of the bond. It is the amount that the bond issuer agrees to repay to the bondholder upon maturity.
What is a Bond sink date?
A bond sink date will have a corresponding amount. This is the amount of the bond issue that will be paid down by the issuer on that date. The bonds that will be "sunk" (refunded) are usually chosen randomly.
What is a gold bond certificate?
A gold bond certificate is a document issued by a government or company that represents a loan taken out by the bondholder to the issuer. The certificate specifies the terms of the loan, including the principal amount, interest rate, and maturity date. Once the bond matures, the issuer repays the principal amount to the bondholder.
How to find the face value of a bond?
The face value of a bond can be found by looking at the bond certificate or by checking the bond's prospectus. It is the amount that the bond issuer promises to repay to the bondholder when the bond matures.
Which of these is an element of a bond Business?
An element of bond business is a face value similar to the principal amount of loan.
What is the purchase price of a bond called?
The purchase price of a bond is called the "face value" or "par value" of the bond. This is the amount that the bond issuer agrees to repay the bondholder at maturity.
How can one determine the face value of a bond?
To determine the face value of a bond, look at the bond certificate or the bond indenture. The face value is the amount that the bond issuer promises to pay back to the bondholder when the bond matures. It is also known as the par value or principal amount of the bond.
Is an issuer of a bond a lender or borrower?
An issuer of a bond is a borrower. When an entity, such as a corporation or government, issues bonds, it is essentially borrowing money from investors who purchase the bonds. In return for their investment, the issuer agrees to pay back the principal amount at maturity and make periodic interest payments. Thus, the issuer incurs debt while investors become creditors.
What is the difference between a callable bond and a retractable bond?
A callable bond is where the issuer has the ability to redeem the bond prior to maturity. A callable bond is where the bond hold has the ability to force the issuer to redeem the bond before maturity. Hope this helps.
What is the major function of a Bond in commerce?
A bond is an instrument of indebtedness of the bond issuer to the holders. The issuer owes the holders a debt and pays them interest.
