Dilan owns a bond that will pay him $45 each year in interest plus $1,000 as a principal payment at maturity. the $1,000 is referred to as the:__________

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RKennedy5423 RKennedy5423

12-09-2022
Business

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Dilan owns a bond that will pay him $45 each year in interest plus $1,000 as a principal payment at maturity. the $1,000 is referred to as the:__________

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tutorconsortium214 tutorconsortium214 · Answer 1 · 2022-09-14T19:27:20-04:00

Dilan owns a bond that will pay him $45 each year in interest plus $1,000 as a principal payment at maturity. the $1,000 is referred to as the:- Multiple Choice coupon

What is a bond?

In the world of finance, a bond is a kind of security where the issuer (the debtor) owes the holder (the creditor) a debt and is required, depending on the terms, to repay the principal (i.e., amount borrowed) of the bond at the maturity date as well as interest (called the coupon) over a certain amount of time. Semiannually, annually, and less frequently at other times, the interest is typically due at set intervals. Consequently, a bond is a type of borrowing or IOU. Bonds give the borrower access to external capital for financing current expenses or, in the case of government bonds, long-term investments.

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