Different bonds have different maturity dates. Additionally, there are different type of bonds, some provide interest based on the face value, and some provide the face value upon maturity.
callable bonds
Fixed rate bonds are a 'security' paying a fixed periodical 'coupon' or interest payment, say 6%. After some defined period, the bond will repay its 'face value' being equivalent of the principal in a loan.
no they sell at their present value
if a bond has finite maturity or limited maturity then we must consider not only the interest rate stream but also the maturity value (face value).regardsSajida Gul
maturity of fixed assets means the completion of useful life of fixed assets.
The issuer will call the bonds and issue new bonds to the maturity date.
Different bonds have different maturity dates. Additionally, there are different type of bonds, some provide interest based on the face value, and some provide the face value upon maturity.
callable bonds
Bonds investors are obligated whether in a corporation or government entity to provide a fixed percent rate return and a definite maturity date.
The yield to maturity represents the promised yield on a bond
Fixed rate bonds are a 'security' paying a fixed periodical 'coupon' or interest payment, say 6%. After some defined period, the bond will repay its 'face value' being equivalent of the principal in a loan.
no they sell at their present value
Compute the current price of the bond if percent yield to maturity is 7%
callable bonds
Coupons, face amount, maturity value and maturity rate all are associated with bonds. Coupons are a type of bond and the face amount tells how much the coupon is worth until it matures, gaining interest.
Trading of bonds (debt), typicxally paying fixed coupons.