Question 1 A bondholder has the following rights: 1. The right to receive the face value of the bond at a specified date in the future, that is the right to receive the amount of money that was invested; 2. The right to receive interest payments at a specified per cent of the bond's face value; this interest represents the bondholder's return on investment; and 3. In some cases, the right to have the corporation pledge some assets to protect the bondholder's investment; this safeguard restricts excess and, in the event that interest or the face amount of the bonds cannot be paid, allows for the sale of these assets to generate the funds necessary for repayment