Question

The exact date the issuer of a bond must pay the principal to the bondholder is called the _____ _____.

A) Maturity date
B) Call date
C) Issue date
D) Redemption date

Answer 1

In financial terms, a bond has several parts including the maturity date when the borrower will pay back the face value and last interest payment.

Step-by-step explanation:

In financial terms, a bond has several parts. A bond is basically an "I owe you" note that an investor receives in exchange for capital (money). The bond has a face value. This is the amount the borrower agrees to pay the investor at maturity. The bond also has a coupon rate or interest rate, which is usually paid semi-annually. Finally, the bond has a maturity date when the borrower will pay back its face value as well as its last interest payment.