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

In calculating the issue price of a bond, the portion associated with the principal 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: B