What term describes the amount a bond issuer agrees to pay the bondholder when the bond reaches its maturity?

Bonds and Bond Valuation MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

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Subject
Bonds and Bond Valuationfinance-mcqs › bonds-and-bond-valuation
Published
15 Jan 2019
Last updated
28 May 2026

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Explanation

The par value of a bond is the principal amount that the issuer promises to pay back to the bondholder at maturity. It represents the bond's face value, distinct from its market price or issue price.

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