Read each statement? below, indicate if it is true or? false, and give a brief e

Question

Read each statement? below, indicate if it is true or? false, and give a brief explanation of your answer.

Read each statement below, Indlcate It it is true or talse, and glve a briet explanation ot your answer. VWhen a bond is sold at a discount, the cash recelved is less than the present value of the future cash flows from the bond, based on the market rate of Interest on the date of issue. O A. because the market rate of interest is used when calculating the present value of the future cash flows. O B·the discount amount equals to the difference between the cash received and the present value of the future cash flows. ° C. the cash received is equal to the present value of the future cash flows. O D. the cash recelved is more than the present value ot the tuture cash tlows.

Explanation / Answer

False, because the cash received is equal to the present value of the future cash flows.

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.