Future Business Leaders of America (FBLA) Securities and Investments Practice Test

When a bond is registered as to principal only at maturity, this means that the bondholder is entitled to receive the principal amount of the bond at the end of its term. This situation typically indicates that the bond does not pay periodic interest (coupons) during its life; instead, the interest is either zero or is not worth claiming for payment during the term.

In this scenario, upon maturity, the bondholder receives solely the principal amount back. The structure of such bonds usually implies that they are issued at a discount and that the return on investment comes from the difference between the purchase price and the principal amount received at maturity. This reinforces the understanding that holders of these bonds should anticipate a singular payment at maturity, which is the recovery of their initial investment rather than an ongoing stream of interest payments.

Thus, the correct conclusion about the fate of the principal in this bond scenario is that only the principal amount is paid to the registered holder at maturity.