Discounting means ________.
A)selling bonds for less than face value
B)calculating the present value of future cash flows
C)selling bonds for more than face value
D)selling bonds at par value

Question

Quizplus · Accepted Answer

Discounting refers to the process of calculating the present value of future cash flows, often using a predetermined interest rate called the discount rate. This is commonly used in finance and investments to determine the value of assets or liabilities over time. It is not related to selling bonds for less or more than face value, or selling bonds at par value.

Discounting Means ________