Question

if the face value of a bond is 100 and its redemption value is 110, bond is maturing at ?
.10% discount
.at par
.10%premium
.none of the above

Answer 1

face value of a bond is 100 and its redemption value is 110

So, Maturity value= Redemption value - face value.

So Maturity value = 110-100=10

Maturity value is the amount of money that can be payed to a person who has invested an amount and is at the end of the debt's holding period