[amp_mcq option1=”state value” option2=”par value” option3=”bond value” option4=”per value” correct=”option2″]
The correct answer is B. par value.
Stated value of bonds or face value is considered as par value. It is the amount that is printed on the face of the bond and is the amount that the issuer of the bond promises to repay at maturity. The par value is also the amount that is used to calculate the interest payments on the bond.
The other options are incorrect. State value is not a term that is used in the context of bonds. Per value is a synonym for par value. Bond value is the market value of a bond, which can be more or less than the par value.