The value of a bond is the present value of the:
A) dividends and coupon payments.
B) dividends and maturity value.
C) maturity value.
D) coupon payments and maturity value.

Question

Quizplus · Accepted Answer

The value of a bond is determined by the present value of its future coupon payments (interest payments) and its maturity value (the principal amount to be paid back at maturity). Dividends are not associated with bonds but with stocks.

The Value of a Bond Is the Present Value of The