What is the issue date of a bond?

• A. The date the bond begins paying coupons.
• B. The date the bond matures.
• C. The date the bond is issued to investors.
• D. The date the issuer files for bankruptcy.

Answer: (C)

The issue date is the date the bond is issued to investors—when ownership transfers and the bond’s terms become effective. From this date, interest starts to accrue and the coupon schedule is anchored, even though the first coupon might come later on the calendar. It’s not the date the bond matures (that’s when the principal is repaid), and it’s not related to a bankruptcy filing. In practice, the issue date is the reference point used to calculate accrued interest if you purchase the bond between coupon dates.