The price of a bond is equivalent to: I. Face value II. Projected interest payments discounted to the present III. The amortization amount of a bond IV. The present value of the principal payment Select one: A. I + III B. I – III C. II + IV D. I + II

The price of a bond is equivalent to II + IV  (option C).

Explanation:

The promise made between two or more persons legally is referred to as a bond. Bonds are provided by companies in order to increase their capital balance. Interest is received during regular intervals by the purchaser.

The price of a bond is equal to the present value of all future interest payments added to the present value of the principal.

The price of the bond is not equal to face value; neither is

the amortisation amount of bond equivalent to the price of the bond.

Therefore, price of the bonds and amortisation amount of bond is not equivalent to the price of the bond.

So, The price of a bond is equivalent to II + IV  (option C).

answer; the correct answer is (0.08);

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi