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.
C) future value of 1.
D) future value of an annuity.

Question

Quizplus · Accepted Answer

The factor applied to the amount of the bond principal is determined from the table of the present value of 1, which calculates the present value of a single sum of money to be received in the future. This is because the proceeds received from issuing a bond represent a future payment to the issuer.

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