Multiple Choice
The selling price of a bond should be equal to the present value of the future cash flows the lender will receive,i.e. ,all the interest payments and the reimbursement of the principal.In this computation,which interest rate (also called discount) is used?
A) The inflation rate
B) The market rate of interest at the issue date for like instruments with similar risk.
C) Bank rate
D) None of these
Correct Answer:
Verified
Correct Answer:
Verified
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