How Should a Long-Term Bond Initially Be Valued

question 67

Multiple Choice

How should a long-term bond initially be valued?

• A) at the future value of the future cash flows
• B) at the present value of the future cash flows
• C) at the present value of the interest to be paid
• D) at the maturity value of the bond

---

Definitions:

Placenta

An organ that develops in the uterus during pregnancy, providing oxygen and nutrients to the growing baby while removing waste.

Yolk

Nutritious material in many animal eggs.

Proteins

Large biomolecules consisting of one or more long chains of amino acid residues, vital for the structure, function, and regulation of the body's cells, tissues, and organs.

Lipids

A group of naturally occurring molecules that include fats, waxes, and certain vitamins, essential for energy storage and cell structure.