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In valuing bonds, the most important consideration is: the bond's future cash flows. whether coupon payments...

In valuing bonds, the most important consideration is:

the bond's future cash flows.

whether coupon payments are annual or semiannual.

the bond's past cash flows.

the bond's past and future cash flows.

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Answer #1

Ans the bond's future cash flows.

In valuing bonds, the most important consideration is the bond's future cash flows. Value of bond is determined by calculating present value of future cash flows. This calculation needs coupon payments, value of bond upon maturity, face value of bond.

Past cash flows have no impact on present value of bonds.

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