[amp_mcq option1=”present value bond” option2=”original issue discount bond” option3=”coupon issued bond” option4=”discounted bond” correct=”option4″]<\/p>\n
The correct answer is: D. discounted bond<\/strong><\/p>\n A discounted bond is a bond that is issued at a price below its face value. This means that the investor will receive a lower return on their investment than they would if they had purchased the bond at its face value. Discounted bonds are often issued when interest rates are high, as investors are willing to accept a lower return in order to lock in a fixed rate of interest.<\/p>\n A present value bond is a bond that is issued at a price that is equal to the present value of its future cash flows. This means that the investor is essentially paying for the bond’s future cash flows in advance. Present value bonds are often issued when interest rates are low, as investors are willing to pay a premium for a bond that offers a higher return.<\/p>\n An original issue discount bond is a bond that is issued at a price below its face value and pays interest at a fixed rate. The difference between the issue price and the face value is called the discount. Original issue discount bonds are often issued by companies that are trying to raise capital quickly.<\/p>\n A coupon issued bond is a bond that pays interest at a fixed rate, which is usually paid semi-annually. The coupon rate is the percentage of the face value that the bondholder receives as interest. Coupon issued bonds are the most common type of bond.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”present value bond” option2=”original issue discount bond” option3=”coupon issued bond” option4=”discounted bond” correct=”option4″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-50984","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"\n