4, rate is the yield paid by a fixed income security, which is the annual coupon payments by the issuer relative to the bond’s face or par value.
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- 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
- a bond offers an annual coupon rate of 4%, with interest paid semiannually. The bond matures in two years. At a market discount rate of 6%, the price of this bond per 100 of par value 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.
- 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 three-year bond with 10 percent coupon rate and $1,000 face value yields 8 percent. Assuming annual coupon payments, calculate the price of the bond. A: $857.96 B: $951.96 C: $1,000.00 D: $1,051.54