Final answer:
The set limit of liability for a bond, which is the amount the borrower must pay back to the investor at maturity, is known as the face value. This is one part of the features of a bond, in addition to the coupon rate and maturity date.
Step-by-step explanation:
In the context of financial terms, when discussing the aspects of a bond, it is noted that a bond acts as an "I owe you" from the borrower to the investor. The term that describes the set limit beyond which the surety is not liable for a bond is known as the face value. This is the predetermined amount the borrower is obligated to repay the bondholder at the bond's maturity date. Alongside the face value, a bond also carries a coupon rate or interest rate, which might be paid semi-annually or at other intervals before the maturity date, when both the last interest payment and the face value are repaid to the bondholder. The bond's present value, which may differ from the face value, is the value a buyer is willing to pay for the bond in current market conditions, factoring in interest rates and time until maturity.