- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 42. Fixed-Income Securities: Defining Elements
- Subject 1. Basic Features of a Fixed-Income Security
CFA Practice Question
The par value of a bond is ______.
A. the number of years over which the issuer has promised to meet the conditions of the obligation
B. the right of the issuer to retire the issue prior to the stated maturity date
C. the amount the issuer agrees to repay the bondholder by the maturity date
Explanation: The par value of a bond is the amount the issuer agrees to pay the bondholder when the bond matures.
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