Which One of the Following Statements About Bonds Is NOT

question 4

Multiple Choice

Which one of the following statements about bonds is NOT true?

• A) To compute a bond's price, one needs to calculate the present value of the bond's expected cash flows.
• B) The value, or price, of any asset is the future value of its cash flows.
• C) The required rate of return, or discount rate, for a bond is the market interest rate called the bond's yield to maturity
• D) The expected future cash flows are estimated using the coupons that the bond will pay and the maturity value to be received.

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