The interest rate that equates the present value of the cash flow received from a debt instrument with its market price today is the _________
举一反三
- With an interest rate of 5 percent, the present value of $100 received one year from now is approximately _________
- When ( ) equals zero, the discount rate is the internal rate of return. A: Discounted Cash Flow B: Annual cash flow C: Payback period D: Net Present Value
- Internal Rate of Return (IRR) is the discount rate which yields a zero ( ) A: Discounted Cash Flow B: Annual cash flow C: Payback period D: Net Present Value
- Which of the following statements about accounting for long-term debt is least accurate（） A: For a bond issued at par, interest expense = coupon rate x face value. B: For a discount coupon bond, cash flow from operations will decrease by the amount of the periodic coupon payment. C: A bond issued at a discount results in lower cash flow from operations and higher cash flow from financing than a bond issued at a premium.
- Annual interest expense is the:（） A: sum of the annual coupon payments. B: amount paid to creditors in excess of par. C: book value of the debt times the market interest rate when it was issued.