Q589
Maturity date decides at time of issuance of bond and legally permissible is classified as
A.
original maturity
AnswerB.
permanent maturity
C.
artificial maturity
D.
valued maturity
Answer: Option A
Solution
Answer: Option A
Solution:
Maturity date decides at time of issuance of bond and legally permissible is classified as original maturity. The "original maturity" is the time between the issue date and the maturity date. This date is included in a bond’s indenture at the time of issuance. An investor that purchases a bond on its issuance date will be quoted the original maturity.