Multiple Choice
Which of the following is correct regarding the present value calculations associated with bonds?
A) The amount of interest a bond pays is fixed over its life.
B) The market interest rate varies from day to day and is the rate used to determine the bond's present value.
C) The amount investors are willing to pay for a bond varies because the bond's present value changes as the market interest rate changes.
D) All of these choices.
Correct Answer:
Verified
Correct Answer:
Verified
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