Question

The principal of a bond is often equal to the _____.


Select the best answer from the choices provided.
date by which the purchase price of the bond is to be repaid
interest paid on the bond
purchase price of the bond
chance that the issuer will be unable to repay the bond

Answer 1

Purchase price of the bond.

The principal of a bond is the initial value or purchase value. Principal is also the amount that interest is paid on.