Question

What does Par Value refer to in the context of bonds?

a.

Market value of the bond

b.

The value of the bond at the time of issue

c.

The promised face value of the bond at maturity

d.

The interest payable to the bondholder

Posted under IC 89 Management Accounting

Answer: (c).The promised face value of the bond at maturity Explanation:Par Value refers to the face value of the bond and the amount the issuer promises to pay at the time of maturity.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What does Par Value refer to in the context of bonds?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What is Coupon Rate in the context of bonds?

View solution

Q. When does Maturity date of a bond occur?

View solution

Q. What is the characteristic of Money Market Investments in terms of maturity?

View solution

Q. How are Mutual Fund Investment schemes broadly classified?

View solution

Q. What is the significance of Real Estate investment?

View solution

Q. What is the primary purpose of Financial Derivatives?

View solution

Q. Which of the following is considered a non-marketable financial asset?

View solution

Q. How is the rate of return on an investment calculated for a period?

View solution

Q. What does Risk on Investment refer to?

View solution

Q. How is Variance defined in the context of investment evaluation?

View solution

Q. What is the significance of Beta in investment evaluation?

View solution

Q. Why is high marketability considered a desirable factor in investment?

View solution

Q. What does Initial Tax Benefit refer to?

View solution

Q. Under which section can an individual or HUF enjoy tax deduction for investments made in Equity Savings Scheme?

View solution

Q. What type of tax benefit is associated with periodic returns from investments?

View solution

Q. When does Terminal Tax Benefit occur?

View solution

Q. What is an example of Terminal Tax Benefit?

View solution

Q. What are Bonds or Debentures?

View solution

Q. What are Government Securities also known as?

View solution

Q. What is the characteristic of the first type of Government Security?

View solution
View All MCQs on IC 89 Management Accounting

Recommended Subjects

Are you eager to expand your knowledge beyond IC 89 Management Accounting? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!

Renewable Energy

Explore the sustainable future of energy with our Renewable Energy category. Dive...

Geotechnical Engineering

Dive into the world of Geotechnical Engineering with our dedicated category. Explore...

International Relations

Navigate the complex world of International Relations with our dedicated category....

Irrigation Engineering

Master the science of Irrigation Engineering with our dedicated category. Explore...

Genetic Engineering

Unlock the potential of Genetic Engineering with our dedicated category. Explore gene...

Instrumentation Transducers

Master the art of instrumentation and transducers with our specialized category....

Life Sciences

Delve into the diverse world of life sciences with our specialized category. Explore...

Heat Transfer

Explore the fascinating world of heat transfer with our Heat Transfer category....

Railway Engineering

Embark on a journey through the world of railway systems with our Railway Engineering...