Multiple Choice
Which statement regarding the sale of bonds is NOT true?
A) Bonds are always sold at their market price.
B) The market price is the present value of the bond.
C) The present value of the bond is the present value of the principal plus the present value of the cash interest payment.
D) The contract rate and the effective rate have no effect on the selling price of the bond.
Correct Answer:
Verified
Correct Answer:
Verified
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