When determining the proceeds received when issuing a bond, the factor applied to the amount of the interest payments is determined from the table of the
A) present value of 1.
B) present value of an annuity of 1.
C) future value of 1.
D) future value of an annuity of 1.

Question

Quizplus · Accepted Answer

The proceeds from issuing a bond are calculated using the present value of an annuity of 1 because interest payments are made periodically and are considered an annuity.

When Determining the Proceeds Received When Issuing a Bond, the Factor