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11. the market value of a bond is equal to: a. the present value of all future c

ID: 2443409 • Letter: 1

Question

11. the market value of a bond is equal to:
a. the present value of all future cash payments provided by a bond.
b. the present value of all future interest payments provided by a bond.
c. the present value of the principal for an interest-bearing bond.
d. the future value of all future cash payments provided by a bond.
e. the future value of all future interest payments provided by a bond.

25. Cash flows from interest from interest received are reported in the statement of cash flows as part of:
a. operating activities
b. financing activities
c. investing activities
d. noncash activities
e. none of these. this is not reported in the statement of cash flows.

Explanation / Answer

11.a. the present value of all future cash payments provided by a bond.
25. c. investing activities