A bond provides information about its par value, coupon interest rate, and maturity date. Define each if these.

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A bond provides information about its par value, coupon interest rate, and maturity date. Define each if these.



Answer: The par value is the amount the issuer will pay the holder when the bond matures. The coupon interest rate is multiplied times the par value to determine the interest payment the issuer must make each year. The maturity date is when the issuer must pay the holder the par value.

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