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The Market Price of a Bond Is Equal to the Present

Question 10

Multiple Choice

The market price of a bond is equal to the present value of the:


A) face value minus the present value of the annuity payments.
B) annuity payments plus the future value of the face amount.
C) face value plus the present value of the annuity payments.
D) face value plus the future value of the annuity payments.
E) annuity payments minus the face value of the bond.

Correct Answer:

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