Which item listed below does not inﬂuence the issue price (present value) of a bond?
A) The reason the bond was issued
B) The dollar amounts to be received
C) The length of time until the amounts are received
D) The market rate of interest

Question

Quizplus · Accepted Answer

The reason the bond was issued does not influence its issue price. The issue price is determined by factors such as the dollar amounts to be received (coupon payments and principal), the length of time until these amounts are received (maturity), and the market rate of interest, which affects the discount rate used to calculate the present value of these cash flows.

Which Item Listed Below Does Not Inﬂuence the Issue Price