Question

In: Accounting

assuming the stated rate of interest and the market rate of interest are different, the value...

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   

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Expert Solution

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.


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