Question

The rate of interest to be paid on the face value of a bond is typically an annual rate set by the issuer.

1. True.
2. False.

Answer 1

The rate of interest to be paid on the face value of a bond is typically an annual rate set by the issuer.

Step-by-step explanation:

Bonds are debt securities that pay interest to investors. The rate of interest to be paid on the face value of a bond is typically an annual rate set by the issuer. This means that the interest paid on the bond is calculated based on the face value of the bond and is usually paid on an annual basis. Therefore, the statement is true.