Which statement about the bond is true?

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Prepare for the Arizona Notary Test. Use flashcards and multiple-choice questions with explanations to enhance understanding. Ace your exam!

Multiple Choice

Which statement about the bond is true?

Explanation:
Understanding bond terms helps you identify what describes a bond at a glance. The key details are the amount the bond promises to repay (par value) and when that repayment happens (maturity). For this bond, the statement that matches both features is a par value of $5,000 and a 4-year maturity. The other options change either the amount to be repaid or the time to repayment, which would describe different bonds, not this one. Coupon payments aren’t specified here, so they don’t affect which description is true.

Understanding bond terms helps you identify what describes a bond at a glance. The key details are the amount the bond promises to repay (par value) and when that repayment happens (maturity). For this bond, the statement that matches both features is a par value of $5,000 and a 4-year maturity. The other options change either the amount to be repaid or the time to repayment, which would describe different bonds, not this one. Coupon payments aren’t specified here, so they don’t affect which description is true.

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