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
A: True
B: False
举一反三
- (I) A discount bond requires the borrower to repay the principal at the maturity date plus an interest payment. (II) A coupon bond pays the lender a fixed interest payment every year until the maturity date, when a specified final amount (face or par value) is repaid.
- If a $5,000 coupon bond has a coupon rate of 13 percent, then the coupon payment every year is _________.
- 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<br/>coupon bond that pays interest annually has a par value of $1,000,<br/>matures in seven years, and has a yield to maturity of 9.3%. The<br/>intrinsic value of the bond today will be ________ if the coupon rate<br/>is 8.5%. A: $712.99 B: $960.14 C: $1,123.01 D: $886.28 E: $1,000.00
- 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.