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Which One of the Following Statements About Bonds Is NOT

Question 30

Multiple Choice

Which one of the following statements about bonds is NOT true?


A) To compute a bond's price, one needs to calculate the present value of the bond's expected cash flows.
B) The value, or price, of any asset is the future value of its cash flows.
C) The required rate of return, or discount rate, for a bond is the market interest rate called the bond's yield to maturity
D) The expected future cash flows are estimated using the coupons that the bond will pay and the maturity value to be received.

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