In order to calculate the present value of the sum of future payments due from a bond,we use the interest rate to ________ those future payments.

Question

Quizplus · Accepted Answer

To calculate the present value of future payments from a bond, we use the process of discounting. This involves using the interest rate to discount or reduce the value of those future payments to their present value. Therefore, the best choice is C, "discount."

In Order to Calculate the Present Value of the Sum