Finance · Face Value
What obligation does the face value of a bond typically represent for the issuing corporation?
- 1The initial cost incurred to underwrite the security
- 2The principal amount promised to be repaid at maturity✓
- 3The annual tax liability incurred by the holder
- 4The total interest to be paid over the bond's life
Correct answer
The principal amount promised to be repaid at maturity
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