Question: The current value of a bond is based: A. On the present value of all future cash flows related to the bond B. On the

The current value of a bond is based:

A.

On the present value of all future cash flows related to the bond
B.

On the present value of the coupons plus the present value of the price.
C.

On the yield to maturity and the coupon rate.

D.

On the present value of the coupons and the future value.

Stock A has high risk. Stock B has low risk. All else equal, which has the higher required return?

A

B.

A=B

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