Both stocks and bonds are valued by summing the discounted future flows of interest (or dividends) and the repayment of principal (or sale of the stock).

Name: Both stocks and bonds are valued by summing the discounted future flows of interest (or dividends) and the repayment of principal (or sale of the stock).
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Question

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Stocks and bonds are both valued using the present value of expected future cash flows, which include interest or dividends and the repayment of principal or sale proceeds.

Both Stocks and Bonds Are Valued by Summing the Discounted