A method of assessing the value of a fixed income security by looking at the future expected free cash flow and discounting it to arrive at a present value is known as:

A method of assessing the value of a fixed income security by looking at the future expected free cash flow and discounting it to arrive at a present value is known as:



A) Internal rate of return.

B) Current yield.

C) Future value.

D) Discounted cash flow.



Answer: D


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