Finance
Face Value of a bond - ANS-This is the value that the issuer gave it initially
periodic receipts of interest from the bond holder are also known as - ANS-coupon payments
yield to maturity - ANS-The discount rate that makes the present value of a bond's payments
equal to its price
Coupon Rate - ANS-This rate is constant through the life of the bond and is decided on when
issued.
How to calculate PMT - ANS-(Face Value x Coupon Rate)/2
When market interest rates exceed a bond's coupon rate, the bond will: - ANS-Sell for less
because it is an inverse relationship
Nominal rate with inflation - ANS-Real return = [(1 + nominal rate) / (1 + inflation rate)] - 1
Face Value of a bond - ANS-This is the value that the issuer gave it initially
periodic receipts of interest from the bond holder are also known as - ANS-coupon payments
yield to maturity - ANS-The discount rate that makes the present value of a bond's payments
equal to its price
Coupon Rate - ANS-This rate is constant through the life of the bond and is decided on when
issued.
How to calculate PMT - ANS-(Face Value x Coupon Rate)/2
When market interest rates exceed a bond's coupon rate, the bond will: - ANS-Sell for less
because it is an inverse relationship
Nominal rate with inflation - ANS-Real return = [(1 + nominal rate) / (1 + inflation rate)] - 1