The Issue Price of Bonds Is Found by Computing the Present

question 82

Short Answer

The issue price of bonds is found by computing the present value of the bond's cash payments,discounted at the _______________ rate of interest at the time of issuance.

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Definitions:

Legal

Pertains to the system of rules that are created and enforced through social or governmental institutions to regulate behavior.

Existing Duty

An obligation that a party is already legally bound to under the terms of a contract or by law.

Quantum Meruit

A legal principle where a person is compensated for services or goods provided when no contract exists, based on the value of the work done.

Satisfaction of Debt

The fulfillment or payment of a debt in its entirety, releasing the debtor from further obligations.