When a debenture is sold,the selling price is generally equivalent to the present value of the debenture payments.

Question

Quizplus · Accepted Answer

When a debenture is sold, investors consider the future cash flows that they will receive from the debenture payments. The selling price of the debenture is generally equivalent to the present value of these expected future cash flows, which takes into account the time value of money and the risk associated with the investment. Therefore, the statement is true.

When a Debenture Is Sold,the Selling Price Is Generally Equivalent