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How is the interest on the bond calculated?
It is calculated as set out in the contract to purchase the bond. Bonds can have different contracts.
What do you call annual interest the issuer promises to pay on the face value bond?
The coupon rate.
What are the three adjustments that have to be made in going from annual to semi annual bond analysis?
There are three adjustments that have to be made in going from annual to semi-annual bond analysis. These three adjustments are to divide the annual interest rate by two, multiply the number of years by two, and divide the annual yield to maturity by two.
If the annual rate of interest on a 2 year treasury bond is 10.5 and the rate on a 1 year treasury bond is 12 what rate of interest should you expect on a 1 year treasury bond one year from now?
ANSER=12
What is the interest rate today on I bonds?
I-bonds have an annual rate of interest. The best way to find the current rate of interest for an I-bond is to go to the website www.treasurydirect.gov and look up the rate.
Earl's 1000 bond earns 6.2 percent in annual interest What is the annual interest?
62
Bens 1000 bond earns 7.5 percent in annual interest What is the annual interest?
75
Are interest rates on government bonds usually calculated on the face value of the bond?
The interest earned on government bonds is calculated on the face value of the bond plus the interest that has been earned on the bond.
How is interest on a bond calculated?
it is calucated on the face value of the bond
How is the interest on a bond calculated?
it is calucated on the face value of the bond
How is the interest on the bond calculated?
It is calculated as set out in the contract to purchase the bond. Bonds can have different contracts.
How interest is calculated on bonds?
it is calucated on the face value of the bond
What is current yield on a bond that the return is 10 percent with a 1000 par value bond with a 10 percent annual coupon and the bond pays interest annual and there are 3 years remaining?
8.5
How are interest on a bond calculated?
Know the bond's face value, then, find the bond's coupon interest rate at the time the bond was issued or bought, then, multiply the bond's face value by the coupon interest rate it had when issued, then, know when your bond's interest payments are made, finally, multiply the product of the bond's face value and interest rate by the number of months in between payments.
The current yield on a bond is equal to?
Annual interest divided by the current market price
What is John's annual yield when John buys a 1000 bond that pays 6 percent annual interest at 75?
8
What do you call annual interest the issuer promises to pay on the face value bond?
The coupon rate.
