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Why use the market rate to calculate in bond issue price? Can choose one or more answers below. 1. The market rate of interest is
Why use the market rate to calculate in bond issue price? Can choose one or more answers below.
1. The market rate of interest is used to figure out the cash interest payments.
2. The market rate is used to find the interest expense each year when you need to use the effective interest rate method.
3. The market rate of interest is used to find the PV of both the lump sum FV payment and the annual cash interest payments.
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