A bond's current market value is equal to the present value of the coupon payments plus the present value of the face amount.
举一反三
- The initial offer price for the target firm is defined as A: The minimum price B: The present value of the minimum price plus some fraction of the present value of net synergy C: The present value of net synergy plus the current market value of the target firm D: The maximum price less the minimum price E: The maximum price less the present value of net synergy
- As the coupon rate of a bond increases, the bond's:() A: face value increases B: current price decreases C: interest payments increase D: maturity date is extended
- A coupon bond pays the owner of the bond a fixed interest payment (coupon payment) every year until the maturity date, when a specified final amount (face value or par value) is repaid. （ ） A: True B: False
- The value of a 10-year, 6% coupon $100 par value bond with semiannual payments, assuming an annual discount rate of 7%, is closest to
- The coupon rate of bond is the interest rate specified in the bond, which is equal to the ratio of the annual interest over the value of bond.