A bond has a face value of $1,000,000 and matures on 12/31/2050. Which statement is FALSE? O The maturity value is $1,000,000 O The bond must have initially sold for $1,000,000. O The par value is $1,000,000. O The company must pay its creditors $1,000,000 on 12/31/2050.

A bond has a face value of $1,000,000 and matures on 12/31/2050. Which statement is FALSE? O The maturity value is $1,000,000 O The bond must have initially sold for $1,000,000. O The par value is $1,000,000. O The company must pay its creditors $1,000,000 on 12/31/2050.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 25P

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Question

A bond has a face value of $1,000,000 and matures on
12/31/2050. Which statement is FALSE?
O The maturity value is $1,000,000
O The bond must have initially sold for $1,000,000.
O The par value is $1,000,000.
O The company must pay its creditors $1,000,000 on
12/31/2050.

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