In: Accounting
assuming the stated rate of interest and the market rate of interest are different, the value of a bond is equal to the?
A face amount of the bond B present value of the interest payments and the principal payment, based on the market interest rate. C present value of the interest payments and the principal payment, based on the stated interest rate D none of the above
Ans : Assuming the stated rate of interest and the market rate of interest are different, the value of a bond is equal to the Present value of the interest payments and the principal amount, based on the market interest rate.