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The current price of a bond is determined by which of the following methods?

a. Calculating the present value of the bond payment at maturity as an annuity, plus the present value of future coupon payments.

b. Calculating the present value of future coupon payments as an annuity, plus the present value of the bond payment at maturity.

c. Discounting the payment at maturity to the present.

d. Discounting the coupon payments to the present.

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M91787451

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