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1. The par value of a bond is the A. value of the bond at maturity plus the price of the bond at purchase. B.

1. The par value of a bond is the

A. value of the bond at maturity plus the price of the bond at purchase.

B. value of the bond at maturity minus the price of the bond at purchase.

C. price of the bond at purchase. D. value of the bond at maturity, or the amount due at repayment.

E. price of the bond at purchase minus the face value of the bond.

2. One way to loan money to a firm is to buy a bond. The purchaser of the bond would be considered

A. a demander of loanable funds.

B. a supplier of loanable funds.

C. a financial intermediary.

D. a bank.

E. both a financial intermediary and a borrower.

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