Question 10 1 pts In finding a bond\'s value, the rate used to discount the bond

Question

Question 10 1 pts In finding a bond's value, the rate used to discount the bond's future cash flows is: the bond's required rate of return. the firm's weighted average cost of capital. the bond's coupon rate the firm's after-tax cost of debt Question 11 1 pts Which of the following statements is true regarding investments in bonds? O Longer maturity bonds generally return more than shorter maturity bonds Shorter maturity bonds generally return more than longer maturity bonds O Higher-rated bonds generally return more than lower-rated bonds. Treasury bonds generally return more than corporate bonds of the same maturity.

Explanation / Answer

Bond Value is the Present value of all interest payments and maturity value. All these interest payments and maturity value will be discounted using aMarket rate of interest.

Answer: Bonds required rate of Return

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