Question

In: Finance

When you calculate the present value of an asset, for example a bond, you are calculating...

When you calculate the present value of an asset, for example a bond, you are calculating _____.

maximum price you would pay for the asset

minimumm price you would pay for the asset

future value of the asset

insurance premiums

Solutions

Expert Solution

Correct option:
maximum price you would pay for the asset

minimumm price you would pay for the asset- is not a correct option since it is the maximum price that is calculated
Future value of an asset- is not correct option as we are calculating present value
Insurance premiums are calculated as difference between present value and price paid

jeff jeffy answered 2 years ago
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