Question

The value of a bond is the present value of the:

a. interest payments and maturity value
b. dividends and maturity value
c. maturity value
d. interest and dividend payments

Answer 1

Explanation:

The present value of a bond is calculated by discounting the bond's future cash payments by the current market interest rate. In other words, the present value of a bond is the total of: The present value of the semiannual interest payments, PLUS. The present value of the principal payment on the date the bond matures.

Answer 2

Answer:

interest and Dividend payments