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QUESTION 6 The fair value of a financial instrument is the future value of its cash flows O True O False QUESTION 7 In the formula for value of a bond, Bo s( 1/r)* (1-1/(1+r)n ) + M/(1+r)n r refers to the discount rate O True O False QUESTION 8 If discount rate is equal to coupon rate, a bond is called discount bond False SAVE AND SUBMIT Click Save and Submit to save and submit. Click Save All Answers to save all answers Solution false : it the present value True False it is a called a bond issued at par value.

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QUESTION 6 The fair value of a financial instrument is the future value of its cash flows O True O False QUESTION 7 In the formula for value of a bond, Bo s( 1/r)* (1-1/(1+r)n ) + M/(1+r)n r refers to the discount rate O True O False QUESTION 8 If discount rate is equal to coupon rate, a bond is called discount bond False SAVE AND SUBMIT Click Save and Submit to save and submit. Click Save All Answers to save all answers Solution false : it the present value True False it is a called a bond issued at par value

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QUESTION 6 The fair value of a financial instrument is the future val.pdf

  • 1. QUESTION 6 The fair value of a financial instrument is the future value of its cash flows O True O False QUESTION 7 In the formula for value of a bond, Bo s( 1/r)* (1-1/(1+r)n ) + M/(1+r)n r refers to the discount rate O True O False QUESTION 8 If discount rate is equal to coupon rate, a bond is called discount bond False SAVE AND SUBMIT Click Save and Submit to save and submit. Click Save All Answers to save all answers Solution false : it the present value True False it is a called a bond issued at par value