Question

Which is not a main characteristic of bonds? Par value Maturity Date Description of colleteral Call...

Which is not a main characteristic of bonds?

  • Par value
  • Maturity Date
  • Description of colleteral
  • Call Premium

Homework Answers

Answer #1

The correct answer is Description of colleteral

The Bond is a debt instrument issued by the company to raise the funds for different purpose, the company has to pay regular interest payment to the bond holder in return. And the face value refers to the value at which the company issues the bond.

Call premium refers to the premium that company pays if the debt is called before the maturity period and the maturity date is the date at which company has to pay the face value or repay the amount of debt raised.

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