248. The market price of a bond is the

Question

Quizplus · Accepted Answer

The market price of a bond represents the present value of its future cash flows, which includes both the principal amount at maturity and all the interest payments. Therefore, option A is the correct answer. Option B and C only consider the principal amount and future interest payments without discounting them to their present value. Option D only considers the present value of the principal amount and ignores all the interest payments.