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How do you cash in a zero coupon bond from 1984 with a maturity date of may 2009?
Wiki User
∙ 14y ago
The bond has matured so if you're the owner of the bond you should have already received payment. If you haven't, contact the issuer to see if there's an error or the law firm that's handling that issuer's bankruptcy.
Wiki User
∙ 14y ago
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Order the events in the life of a bond from earliest to latest A bond maturity B bond issue C coupon payment?
1)bond issue 2)coupon payment 3)bond maturity
If a coupon bond is selling at par does the current yield equal its yield to maturity?
Yield usually refers to yield to maturity. If a bond is trading at par it usually means the yield to maturity is equal to the coupon.
Does bond pay interest on maturity?
Yes. At maturity you get the final coupon payment in addition to the return of principal.
What is a Zero coupon bond?
A zero-coupon bond is a bond bought at a price lower than its face value, with the face value repaid at the time of maturity. It does not make periodic interest payments, or have so-called "coupons," hence the term zero-coupon bond.
What happen when the yield to maturity on a bond is greater than the coupon rate?
When the yield of a bond exceeds it coupon rate, the price will be below 'par' which is usually $100.
Order the events in the life of a bond from earliest to latest?
1st-Bond Maturity 2ed- Coupon Payment 3ed- Bond Issue
When a bonds yield to maturity is greater than the bonds coupon rate the bond?
When the yield of a bond exceeds it coupon rate, the price will be below 'par' which is usually $100.
Difference between coupon rate and yield to maturity?
The coupon rate is the actually stated interest rate. This is the rate earned on a NEW issue bond. The yield to maturity takes into consideration the purchase price of a bond bought in the secondary market. For example, if you buy a $1,000 bond for $1100 which matures in 10 years and has a coupon of 5%, your coupon is 5%, but your yield to maturity would be closer to 4% because you paid $1100, but will only get back $1,000 at maturity (losing $100). The "loss" reduces the return.
If a bond's yield to maturity exceeds its coupon rate does the bond's current yield must also exceed its coupon rate?
No......The price of the bonds will be less than par or 1,000.....
Bond face value-$100, time to maturity - 5 years, coupon rate 5% redeemed at face value, what will be the ytm?
The yield to maturity will be 5% since both Face Value and Redemption value are same. If you purchase the bond for 95 or 105 your yield to maturity will change than what the coupon rate is.
A 6-year Circular File bond pays interest of 80 annually and sells for 950 What are its coupon rate current yield and yield to maturity?
Bond Pricing. A 6 year circular file bond pays interest of $80 annually, and sells for $950. What are its coupon rate, Current yield, and yield maturity?
What duration does a 1 year corporated bond with a 5 percent coupon have relative to a t bill?
That would depend on the yield and the coupon frequency, but assuming the corporate bond and T-Bill have the same maturity (1 year) and the bond pays a semi-annual coupon, while the T-Bill pays all at maturity and has a lower yield that the bond, the duration on the corporate bond would be (slightly) lower. As an example; 1) A T-bill with 1 year Maturity an a yield of 0.20% would have a Modified Duration (the best to use) of close to 1.00 2) A 'Par' Corporate bond with a 5% semi-annual coupon would have a Modified Durationof 0.96 years. This effect will be more prominent with longer maturity bonds.
