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To find the total bond value, add the present value of the amount paid at maturity to the _____ of the annual coupon payments. Multiple choice question. future value factor simple interest amount annuity present value

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Tundexiidn

The addition of the present value of the amount paid at maturity to the annuity Present value of the annual coupon payments helps to derive the total bond value.

Calculation of the PV of bond's future interest payments known as cash flow and the bond's value upon maturity known as face value are components in Bond valuation.

  • The present value of the amount paid at maturity need to be determined for calculation of total bond value.

  • The annuity Present value of the annual coupon payments need to be determined for calculation of total bond value.

Therefore, the answer is annuity PV because the addition of the present value of the amount paid at maturity to the annuity Present value of the annual coupon payments helps to derive the total bond value.

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