A bond’s future payments are called itsA) cash flows.B) maturity values.C) discounted present values.D) yields to maturity.
A) cash flows
A) Cash flows.
The future payments received by a bondholder are typically referred to as its cash flows. These payments include interest payments and any principal repayment made at maturity by the issuer of the bond. The timing and amount of these cash flows are specified in the bond’s terms and conditions.
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