When determining how to compute the present value of a bond, the buyer computes the ________

A) present value of par value at the market rate and the present value of the interest at the stated rate
B) future value of par value and interest at the stated interest rate
C) present value of the interest at the market rate and the present value of par value at the stated rate
D) present value of par value and the present value of the interest at the market interest rate

Answer: D

Business

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