Question

When a bond is sold at a​ discount, the maturity value is less than the present value of the principal and interest​ payments, based on the market rate of interest on the date of issue.True / False.

Answer 1

given statement is False

Step-by-step explanation:

solution

As given bond sold at the​ discount

maturity value less than present value

but maturity value can not be less than present value of principal and interest

because bond sold at the​ discount

if bond sold at the​ discount than maturity value will be greater than the resent value of future cash​ flow

so we can say that given statement is False