Score: 0 of 1 pt 5 of 9 (4 Score: 36.36%, 4 of 11 pt S9-6 (book/static) your a i

Question

Score: 0 of 1 pt 5 of 9 (4 Score: 36.36%, 4 of 11 pt S9-6 (book/static) your a is soid at a discount, the cash recelved is less than the present value of the future cash flows from the bond, based on the markot rate of interest on the date of issue O A. the discount amount equals to the difference between the cash received and the present value of the fubure cash flows O B. because the market rate of interest is used when caloulating the present value of the future cash flows O C. the cash received is more than the present value of the future cash flows O D. the cash received is equal to the present value of the future cash flows False True

Explanation / Answer

1.False.

D.the cash received is equal to present value of future cashflows.

when discounted with market rate of interest the price paid equals the present value of future cash flows.

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