For a bond, the present value model incorporates both the coupon receipts and the capital gain or loss.

Name: For a bond, the present value model incorporates both the coupon receipts and the capital gain or loss.
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Quizplus · Accepted Answer

The present value model takes into account both the coupon payments and the eventual repayment of the principal at maturity, which can result in a capital gain or loss depending on the prevailing interest rates.

For a Bond, the Present Value Model Incorporates Both the Coupon