The price of a corporate bond is the present value of its face amount at the mar

Question

The price of a corporate bond is the present value of its face amount at the market or effective rate of interest:

Answers:
A. Plus the present value of all future interest payments at the market or effective rate of interest.
B. Plus the present value of all future interest payments at the stated rate of interest.
C. Reduced by the present value of all future interest payments at the market or effective rate of interest.
D. Reduced by the present value of all future interest payments at the stated rate of interest.

Explanation / Answer

c

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