In calculating the issue price of a bond, the portion associated with the periodic interest payments is calculated using which time value factor?

In calculating the issue price of a bond, the portion associated with the periodic interest payments is calculated using which time value factor?



A) Future value of $1.

B) Present value of $1.

C) Future value of an ordinary annuity of $1.

D) Present value of an ordinary annuity of $1.


Answer: D


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