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    Exam 3: What Do Interest Rates Mean and What Is Their Role in Valuation?
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    The Interest Rate That Equates the Present Value of the Cash
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The Interest Rate That Equates the Present Value of the Cash

Question 36

Question 36

Multiple Choice

The interest rate that equates the present value of the cash flow received from a debt instrument with its market price today is the


A) simple interest rate.
B) discount rate.
C) yield to maturity.
D) real interest rate.

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