We can calculate the issue price of a bond as the face amount plus the total periodic interest payments.

Name: We can calculate the issue price of a bond as the face amount plus the total periodic interest payments.
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Question

Quizplus · Accepted Answer

The issue price of a bond is calculated as the present value of its future cash flows, which include both the face value and the periodic interest payments, discounted at the market rate of interest.

We Can Calculate the Issue Price of a Bond as the Face