When a bond matures the issuer repays the bonds face, Financial Management

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When a bond matures the issuer repays the bonds face

1. When a bond matures, the issuer repays the bond’s face value. True or False?

2. The return to bondholders is guaranteed to equal the yield to maturity only if the bond is held until maturity. True or False?

3. A bond's bid price will be lower than the ask price. True or FALSE?

4. Issuers compensate investors for default risk by putting a high face value on their bonds. True or False?

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Financial Management: When a bond matures the issuer repays the bonds face

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Financial Management: When a bond matures the issuer repays the bonds face

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