The market price of a bond issued at a discount is the present value of its principal amount at the market (effective) rate of interest: Multiple Choice Plus the present value of all future interest payments at the market (effective) rate of interest. Plus the present value of all future interest payments at the rate of interest stated on the bond. Less the present value of all future interest payments at the market (effective) rate of interest. Less the present value of all future interest payments at the rate of interest stated on the bond.
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