Bon Years to maturity Par value of bond Coupon rate Frequency interest paid per year Effective annual rate Calculation of periodic rate: Nominal annual rate Periodic rate Calculation of bond price: Number of periods Interest rate per period Coupon payment per period Par value of bond Price of bond 10 $1,000.00 11.00% 2 8.15% 0.00% $1,000.00 Formulas #N/A #N/A Formulas #N/A #N/A #N/A
Bon Years to maturity Par value of bond Coupon rate Frequency interest paid per year Effective annual rate Calculation of periodic rate: Nominal annual rate Periodic rate Calculation of bond price: Number of periods Interest rate per period Coupon payment per period Par value of bond Price of bond 10 $1,000.00 11.00% 2 8.15% 0.00% $1,000.00 Formulas #N/A #N/A Formulas #N/A #N/A #N/A
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A bond is a debt instrument that takes a loan (in the form of the bond price) and repays the interest along with the principal (in the form of face value and coupons). It is different from a traditional loan because it can be traded on the secondary market.
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