Some Bonds Mature in Installments

question 24

Multiple Choice

Some bonds mature in installments.If a bond issue contains this feature,the bonds are known as:

• A)secured bonds.
• B)convertible bonds.
• C)callable bonds.
• D)serial bonds.

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Definitions:

Net Present Value

Net Present Value (NPV) is a financial metric that calculates the total value today of a series of future cash flows, adjusting for the time value of money.

Capital Budgeting

The process of planning and managing a company's long-term investments in major projects or assets.

Discount Rate

The interest rate that discounted cash flow analysis relies on to calculate the current worth of prospective cash flows.

Cash Inflows

The money received by a business from its operational, investment, and financing activities.