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The Issuance Price of a Bond Is the Present Value

question 9

True/False

The issuance price of a bond is the present value of both the principal plus the cash interest to be received over the life of the bond discounted by the stated (coupon)rate.


Definitions:

Continental Shelf

The extended perimeter of each continent, lying relatively shallow in the ocean, where the seabed is at a gentle slope before a steep drop off to the ocean floor.

Passive Margin

The transition between oceanic and continental lithosphere that is not an active plate boundary.

Oceanic Crust

The relatively thin part of the Earth's crust that underlies the ocean basins, composed mostly of basalt and gab-bro.

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Information provided regarding aspects of one's performance or understanding, which can be used as a basis for improvement.

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