read each below indicate if it is true or false give a brief explanation of your
ID: 2424384 • Letter: R
Question
read each below indicate if it is true or false give a brief explanation of your answer. the cash received is more than the present value of the future cash flows the cash received is equal to the present value of the future cash (lows. because the market rate of interest is used when calculating the present value of the future cash flows. the discount amount equals to the difference between:he cash received and the present value of the future cash flows When a bond is issued at a discount, the semiannual cash interest payments are calculated using the market rate on the date of issue. because the bond is issued at a discount 3. the market rate is only used to calculate cash interest payment when a bond is issued at a premium C. the contract (stated) rate no, me marKet rate, is always used to calculate f. cash .the contract (stated, rate, used to calculate the present valoe of the Mur. cash from bond.Explanation / Answer
1
Answer is False
The Cash received is equal to the presnet value of the future cash flow
2
Answer is false
the contract (stated) rate,not the market rate , is always used to calculate the cash interest payment
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