1. Which of the following is FALSE about a bond's face value?

Select one:

a. the face value represents the amount borrowed per bond

b. the face value is the same as the bond's price.

c. the face value is paid at maturity

d. the face values is always $1000

2. Which of the following best describes the bond's maturity date?

Select one:

a. the final coupon and principal (amount borrowed) is paid on the maturity date.

b. before the maturity date, the bond has no value.

3.

Government and businesses issue bonds to borrow millions of dollars to fund expansion and other projects. Though they are borrowing millions of dollars in total, bonds are issued with $1000 face values. Why?

Select one:

a. so that more investors can afford to buy the bonds.

b. the law requires that bonds are issued in this way.

c. so they do not have to repay so much.

d. because it is easier to keep track of.

c. the bondholder can redeem the bond on the maturity date.

d. the maturity date is when the bond is sold.