Question

When bonds mature, a corporation will pay the bondholders: Group of answer choices The face amount...

When bonds mature, a corporation will pay the bondholders:

Group of answer choices The face amount plus the original premium or minus the original discount. The face amount of the bonds. The current market value of the bonds. The face amount plus the interest accrued since the date the bonds were issued.

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Answer #1

On the maturity of bond,the bondholders will be paid for the face value of bond along with interest accrued since the date of issue.

The corporation will be liable to pay face value of bond plus interest accrued since issue of bond.This is basic condition which has to be fulfilled by corporation irrespective of additional conditions is attached with the issue of bond.The additional conditions may create liability of paying premium etc. on the face value of bond.

Please comment for any other explanation.

Thanks,

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