Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

11. Long Term Liabilities

Introduction to Bonds and Bond Characteristics

Financial Accounting

11. Long Term Liabilities

Introduction to Bonds and Bond Characteristics

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Multiple Choice

What is the principal amount of a bond that is repaid at the end of the loan term called?

Yield to maturity

Coupon rate

Market value

Face value

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Verified step by step guidance

Understand the concept of a bond: A bond is a fixed-income instrument that represents a loan made by an investor to a borrower, typically corporate or governmental.

Learn the definition of 'Face Value': The face value (also known as par value) of a bond is the principal amount that the issuer agrees to repay the bondholder at the end of the bond's term, also known as maturity.

Differentiate between related terms: Yield to maturity refers to the total return anticipated on a bond if held until maturity. Coupon rate is the annual interest rate paid on the bond's face value. Market value is the current price at which the bond is traded in the market.

Recognize that the face value is fixed and does not change over the life of the bond, whereas market value fluctuates based on market conditions.

Conclude that the principal amount repaid at the end of the loan term is called the 'Face Value,' as it represents the original amount borrowed by the issuer.