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Suppose there is a bond that pays an interest payment of at the end of the first year and then pays another interest payment of plus the face value at the end of year two when it matures The inter

Suppose there is a bond that pays an interest payment of at the end of the first year and then pays another interest payment of plus the face value at the end of year two when it matures The inter

Suppose there is a  bond that pays an interest payment of  at the end of the first year and then pays another interest payment of  plus the  face value at the end of year two when it matures The interest payment is known as a coupon payment and therefore bonds that pay interest are known as coupon bonds Since this bond pays its interest payments once per year it is known as a  annual coupon bond Notice that  of the  face value of the bond is equal to the  coupon payment

  1. The yield to maturity of a bond is the interest rate that equates the present
mahesh 15-Feb-2020

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