Question

At the redemption date, the bond issuer makes a transfer of funds to the investor corresponding to

a) Principal amount
b) Interest accrued
c) Both principal amount and interest accrued
d) None of the above

Answer 1

At the redemption date, both the principal amount and interest accrued are transferred to the investor by the bond issuer.

Step-by-step explanation:

At the redemption date, the bond issuer makes a transfer of funds to the investor corresponding to both the principal amount and interest accrued. The principal amount is the amount the borrower agrees to pay the investor at maturity, while the interest accrued is the interest that has accumulated on the bond over time.