Multiple Choice QuestionBonds accrue interest until they have been repaid on or before the ______ date.Multiple choice question.maturityinterestshareindenture
Question
Multiple Choice Question
Bonds accrue interest until they have been repaid on or before the ______ date.
- maturity
- interest
- share
- indenture
Solution
The correct answer to the question is "maturity."
Explanation
Bonds are a form of debt security where the issuer borrows funds from investors and agrees to pay back the principal amount along with interest at specified intervals. The "maturity date" of a bond is the date on which the principal amount of the bond is to be paid in full. Up until this date, the bond accrues interest, which is usually paid semi-annually or annually, depending on the terms of the bond.
The other options do not correctly describe the process related to bonds:
- "Interest" refers to the cost of borrowing and is not a date.
- "Share" pertains to stock ownership, which is different from bond debt.
- "Indenture" refers to the legal agreement governing the bond, not a date.
Thus, the accurate fill-in for the blank is maturity date.
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