Financial assets such as bonds and shares can be valued by discounting their future cash flows and summing these present values.

Question

Quizplus · Accepted Answer

This is true. The value of financial assets such as bonds and shares can be determined by discounting the expected future cash flows of the asset and adding up the present values. This technique is commonly used in finance to determine the fair market value of various types of investments.

Financial Assets Such as Bonds and Shares Can Be Valued