Bond's Par Value

C

The correct answer is C. Face.

When a bond is issued, it has a stated value that is printed on the bond certificate, which is referred to as the face value or par value of the bond. This is the amount of money that the bond issuer promises to pay the bondholder when the bond matures or reaches the end of its term.

For example, if a bond has a face value of $1,000 and a maturity date of 10 years from the date of issuance, the bondholder can expect to receive $1,000 at the end of the 10-year term. This is the amount that the issuer is obligated to pay, regardless of how much the bondholder paid for the bond initially.

It is important to note that the face value of a bond is not the same as its market value, which is determined by supply and demand in the bond market. The market value of a bond can fluctuate based on a variety of factors, such as changes in interest rates, credit ratings, and market conditions.

The other answer choices in the question are also important bond terms, but they refer to different aspects of a bond:

• Call value refers to the price at which a bond can be redeemed by the issuer before its maturity date.
• Maturity value is another term for the face value of a bond, which is paid to the bondholder when the bond reaches its maturity date.
• Coupon value is the fixed interest rate that the bond issuer pays to the bondholder on a regular basis (usually semi-annually) until the bond matures.