The present value of a bond is determined by the

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The present value of a bond is determined by the market rate of interest because it affects the discounting of future cash flows (the coupon payments and the face value) to present value. The date of maturity and the face value are also important factors in determining present value because they affect the timing and amount of future cash flows. The marginal rate of income tax and rate of inflation are not directly relevant to determining the present value of a bond.

The Present Value of a Bond Is Determined by the