The four steps to determining the price of a bond are ________.
A) determine the amount and timing of the present cash flows,determine the appropriate discount rate,find the present value of the lump-sum principal and the annuity stream of coupons,and add the PVs of the principal and coupons
B) determine the amount and timing of the future cash flows,determine the appropriate discount rate,find the future value of the lump-sum principal and the annuity stream of coupons,and add the FVs of the principal and coupons
C) determine the amount and timing of the future cash flows,determine the appropriate discount rate,find the present value of the lump-sum principal and the annuity stream of coupons,and multiply the PVs of the principal and coupons
D) determine the amount and timing of the future cash flows,determine the appropriate discount rate,find the present value of the lump-sum principal and the annuity stream of coupons,and add the PVs of the principal and coupons
Correct Answer:
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Q2: Five years ago,Simpson Warehouses Inc.issued twenty-five-year 10%
Q3: Ten years ago Salmon Acqua Farming Inc.issued
Q4: Twenty years ago Bison Enterprises Inc.issued thirty-year
Q5: Bonds are sometimes called _ securities because
Q6: Ten years ago Pancake House Inc.issued twenty-five-year
Q8: The _ is the return the bondholder
Q9: The _ is the expiration date of
Q10: The _ is the face value of
Q11: Creative Solutions Inc.has issued 10-year $1,000 face
Q12: A bond may be issued by _.
A)companies
B)state
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