How is the value of a bond determined?
A) The present value of the bond's future cash flows is discounted by one or more appropriate rate(s) .
B) The perpetuity model is used to determine the value of a bond.
C) The present value of the company's future cash flows is discounted by one or more appropriate rate(s) .
D) The constant growth dividend model is often used to value bonds.
Correct Answer:
Verified
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