The market price of a bond issued at a discount is the present value of its principal amount at the market (effective) rate of interest
a. plus the present value of all future interest payments at the market (effective) rate of interest.
b. plus the present value of all future interest payments at the rate of interest stated on the bond.
c. minus the present value of all future interest payments at the market (effective) rate of interest.
d. minus the present value of all future interest payments at the rate of interest stated on the bond.
A
You might also like to view...
The self-employment tax rate is equal to the rate for Social Security and Medicare
Indicate whether the statement is true or false
Briefly explain the purpose and benefits of using a password for QuickBooks access.
What will be an ideal response?
Convertible bonds are normally ________
A) debentures B) income bonds C) zero coupon bonds D) mortgage bonds
Timothy works for a company that pays employees in his position $12 per hour to work but also pays for medical and dental coverage, a 401K retirement plan, and a week of paid vacation. Fred has a job and is paid $14 per hour without medical or dental coverage, paid vacation, or a 401K. Fred brags that he makes more money than Timothy because he is paid more money per hour. Which of the following is true?
A. The benefits Timothy receives from his company, in addition to his wages, very likely total more per hour than Fred earns. B. Fred is correct. C. Fred is correct because it is unlikely Timothy will ever use his medical or dental benefits therefore the employer's contribution to these is lost to Timothy. D. Fred is not being paid based on his comparable worth but Timothy is.