Issuing Procedures - face value is the amount of principal...

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Issuing Procedures Alternative Terminology The contractual rate is often referred to as the stated rate . A bond certificate is issued to the investor to provide evidence of the investor's claim against the company. As Illustration 10-3 shows, the bond certificate provides information such as the name of the company that issued the bonds, the face value of the bonds, the maturity date of the bonds, and the contractual interest rate. The
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Unformatted text preview: face value is the amount of principal due at the maturity date. The maturity date is the date that the final payment is due to the investor from the issuing company. The contractual interest rate is the rate used to determine the amount of cash interest the borrower pays and the investor receives. Usually the contractual rate is stated as an annual rate, and interest is generally paid semiannually....
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