corporate bond
The contractual interest rate is the rate at which the borrower pays and the investor receives are determined.
The bank pays it to you. The interest reflects the return on the capital you have loaned to the bank.
1962
A tax deferred fixed annuity pays a flat interest rate.
corporate bond
The contractual interest rate is the rate at which the borrower pays and the investor receives are determined.
It is interest that is paid separately. For an investor, it is paid out to the investor and not rolled into the investment.
It goes to the investor who buys the bond. A zero coupon bond is a bond in which, the investor need not pay any premium (coupon) above the face value of the bond while purchasing it. Let us say a company issues a $10,000 bond at a discount of 10% with zero coupon, it is enough if the investor pays $9000 to buy the bond. At the time of maturity he would get back $10,000. This 10% discount can be compared to the interest earned on the investment for the investor.
The bank pays it to you. The interest reflects the return on the capital you have loaned to the bank.
1962
simple interest
by purchasing shares in the company
The principle and interest.
A tax deferred fixed annuity pays a flat interest rate.
When an investor's accounting period ends on a date that does not coincide with an interest receipt date for bonds held as an investment, the investor must a. make an adjusting entry to debit Interest Receivable and to credit Interest Revenue for the amount of interest accrued since the last interest receipt date. b. notify the issuer and request that a special payment be made for the appropriate portion of the interest period. c. make an adjusting entry to debit Interest Receivable and to credit Interest Revenue for the total amount of interest to be received at the next interest receipt date. d. do nothing special and ignore the fact that the accounting period does not coincide with the bond's interest period.
The people do.