CHAPTER 5Interest Rate and Bond ValuationMultiple Choice QuestionsI.DEFINITIONSCOUPONa1.The stated interest payment, in dollars, made on a bond each period is called the bonds:a.coupon.b.face value.c.maturity.d.yield to maturity.e.coupon rate.Difficulty level: EasyFACE VALUEb2.The principal amount of a bond that is repaid at the end of the loan term is called the bonds:a.coupon.b.face value.c.maturity.d.yield to maturity.e