- Study guides, Class notes & Summaries

Mary just purchased a bond which pays $60 a year in interest. What is this $60 called? - coupon Bert owns a bond that will pay him $75 each year in interest plus a $1,000 principal payment at maturity. What is the $1,000 called? - face value A bonds coupon rate is equal to the annual interest divided by which one of the following? - face value The specified date on which the principal amount of a bond is payable is referred to as which one of the following? - maturity Currently, the bond ...

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