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1 Valuing bonds is an application of present value a Pure.pdf

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1. Valuing bonds is an application of present value. a. Pure discount or zero-coupon bonds promise to make a single payment on a predetermined future date. b. Fixed-payment loans promise to make a fixed number of equal payments at regular intervals. c. Coupon bonds promise to make periodic interest payments and repay the principal at maturity. d. Consols (perpetuities) promise to make periodic coupon payments forever..

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1. Valuing bonds is an application of present value. a. Pure discount or zero-coupon bonds promise to make a single payment on a predetermined future date. b. Fixed-payment loans promise to make a fixed number of equal payments at regular intervals. c. Coupon bonds promise to make periodic interest payments and repay the principal at maturity. d. Consols (perpetuities) promise to make periodic coupon payments forever.

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