Question: A corporation issues 2 - year 5 % bonds with a face value of $ 1 , 0 0 0 , 0 0 0 .

A corporation issues 2-year 5% bonds with a face value of $1,000,000. The bonds are issued at par and pay interest annually.Which of the following is true if the bonds are held to maturity?
Group of answer choices
The bond holders will receive an annual interest payment and will receive the par (face) value of the bonds at maturity.
The bondholders will only receive interest payments and not the par value if the bonds are held to maturity.
The bondholders will receive 5% of the par value when the bonds mature and will not receive any interest payments.
The bondholders will receive 95% of the par value when the bonds mature and will not receive any interest payments.

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