The par value of a bond is minimum legal amount below which teh bond cannot be issued.

The par value of a bond is minimum legal amount below which teh bond cannot be issued.



Answer: False - the par value is the face value of the bond; teh bond might be issued at par, at a premium (above par) or at a discount (below par) depending on the relationship between the coupon rate and the market rate on the date of issuance


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