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....
View Full Document
- Spring '11
- Finance, Black-and-white films, contractual rate