When determining the proceeds received when issuing a bond, the factor applied to the amount of the bond principal is determined from the table of the
A) present value of 1.
B) present value of an annuity 1.
C) future value of 1.
D) future value of an annuity 1.

Question

Quizplus · Accepted Answer

The proceeds from issuing a bond are calculated using the present value of 1, as it discounts the bond's future cash flows to their present value.

When Determining the Proceeds Received When Issuing a Bond, the Factor