Which of the following is not true about bond pricing A. Finite ending dates B. At...
Which of the following is not true about bond pricing
| A. |
Finite ending dates |
|
| B. |
At the maturity stage you will receive a face value back |
|
| C. |
Discount the annual streams and single sum to the present |
|
| D. |
No single sum payment at the end |
Homework Answers
Hello SIr/ Mam
YOUR REQUIRED ANSWER IS OPTION D
In bond pricing, we receive annual cashflows (interest payments) and a single cashflow a the end (Bond Face Value).
Hence, at the end, we receive single sum payment .
I hope this solves your doubt.
Feel free to comment if you still have any query or need something else. I'll help asap.
Do give a thumbs up if you find this helpful.
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