true or false question\nwhen pricing a bond, the present value of the interest payments is added to the…

true or false question\nwhen pricing a bond, the present value of the interest payments is added to the present value of the maturity value of the bond.\ntrue\nfalse

true or false question\nwhen pricing a bond, the present value of the interest payments is added to the present value of the maturity value of the bond.\ntrue\nfalse

Answer

Brief Explanations:

The price of a bond is calculated as the sum of the present value of the bond's interest payments (an annuity) and the present value of the bond's maturity value (a single - lump sum payment at maturity). This is based on the time - value of money concept in finance.

Answer:

True