Suppose there is a bond that pays an interest payment of at the

Home / Questions / 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

The yield to maturity of a bond is the interest rate that equates the present

mahesh 15-Feb-2020

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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

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