ECONOMICS (CBSE/UGC NET)

ECONOMICS

SAVING AND INVESTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
The specified time in the future when the principal (or initial investment) amount of the bond is repaid to the bondholder
A
maturity date
B
market price
C
principal
D
bond
Explanation: 

Detailed explanation-1: -The maturity date refers to the moment in time when the principal of a fixed income instrument must be repaid to an investor. The maturity date likewise refers to the due date on which a borrower must pay back an installment loan in full.

Detailed explanation-2: -Maturity date: This refers to the length of time until the bond’s principal is scheduled to be repaid to the bondholder. The maturity date can be short-or long-term. Once the date is reached, the bond’s issuer-whether corporate or governmental-must repay the bondholder the full face value of the bond.

Detailed explanation-3: -The face value is the bond’s principal or par value. It is repaid at maturity.

Detailed explanation-4: -Maturity Date The date of maturity is when the company must pay back the principal-initial investment-to bondholders.

Detailed explanation-5: -Share. Loan maturity date refers to the date on which a borrower’s final loan payment is due. Once that payment is made and all repayment terms have been met, the promissory note that is a record of the original debt is retired.

There is 1 question to complete.