Fin 370 Assignment 2: Questions and Answers with Complete Solutions
face value - The amount the bondholder will be repaid at maturity. coupon rate - the interest paid on a bond, expressed as a percentage of the bond's par value expressed in APR coupon payment formula - (Coupon Rate)*(Face Value)/(# of payments per year) zero coupon bond - a bond that makes no coupon payments and is thus initially priced at a discount pure discount bonds - a bond that makes only one payment at maturity treasury bills - short-term government securities issued at a discount from face value and returning the face amount at maturity
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fin 370 assignment 2 questions and answers