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The correct option is C ; Par or face value A bond is a contractual arrangement between the bond's issuer and the bondholders.
The bond issuer, maturity date, coupon, face value, bond price, and bond yield are the most essential common features shared by all bonds.
The major drivers of a bond's coupon rate are two characteristics of the bond: credit quality and time to maturity. If the issuer has a low credit rating, the chance of default is higher, and the interest rate on these bonds is higher.
Bonds with a long maturity date often pay a higher interest rate. Bond characteristics include their maturity, coupon (interest) rate, tax status, and callability. Bonds are subject to a variety of risks, including interest rate risk, credit/default risk, and prepayment risk.
Learn more about to bond's characteristics, visit here;
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