Market price of a bond issued at a discount

Reference no: EM13133043

The market price of a bond issued at a discount is the present value of its principal (face) amount at the market (effective) rate of interest:

a. Less the present value of all future interest payments at the market (effective) rate of interest.

b. Less the present value of all future interest payments at the rate of interest stated on the bond.

c. Plus the present value of all future interest payments at the market (effective) rate of interest.

d. Plus the present value of all future interest payments at the rate of interest stated on the bond.

Reference no: EM13133043

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