Bonds obligate the issuer to make specified payments to the bondholder on specified dates over a specified time period (maturity). These specified payments are in the form of coupon payments and par value. Par value (also called face value or nominal value) indicates how much the issuer will repay to the bondholder at maturity. Par value of Turkish bonds in general is 100 whereas US bonds typically have a par value of $1.000. The coupon rate of a bond determines the coupon (interest) payments. Coupon payments are the periodic payments received by bondholders until the bond matures. The annual coupon payment is equal to the coupon rate times the par value of the bond. Some bonds pay their coupons in more than one payment per year, such as semi-annually or quarterly. The coupon rate, maturity date and par value of the bond are specified in bond’s indenture. The indenture is a contract between issuer and bondholder specifying the characteristics of the bond.

As also understood from the information given, the statements in the options I, II, III and V are correct, so the correct answer is D. The statement in the option IV is not correct because of the fact that the coupon rate, maturity date and par value of the bond are specified in bond’s indenture.