4 Questions
Which of the following best describes bond valuation?
The process of estimating the intrinsic worth of a bond
What is the theoretical fair value of a bond based on?
The expected cash flows of the bond
How is the value of a bond calculated?
By discounting the bond's expected cash flows to the present
What does it mean if a bond is selling at a discount?
The market price of the bond is less than its par value
Test your knowledge of bond valuation with this quiz! Learn about the process of estimating the fair value of a bond by discounting its expected cash flows.
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