Step1: Face value Step2: Contractual interest rate Step3: Bond certificate
Work Step by Step
Step1: The principal amount due at the maturity date is the face value of Bond. Step2: The rate of interest payable by the issuer company on the bond to the bondholder periodically is called contractual interest rate. Step3: It is a document issued to the bondholder, to provide evidence of the investor's claim against the company, on the terms and conditions specified therein.