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The bond which are obligated to get paid their principal and interest from issuer or its project through the revenue collection are known as "Revenue Bonds". Usually, issuer issues bonds for certain "project" and he requires capital investment hence he issues revenue bonds and the issuer pays back the interest and principal of the bonds through the receipt of the project i.e; through the revenue earned by the project.
corporate bond
corporate bond
The contractual interest rate is the rate at which the borrower pays and the investor receives are determined.
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?
The interest rate paid on a bond is known as the coupon rate. A $1,000 fixed rate bond with a 5% coupon rate purchased at par would yield $50 annually in interest payments.
A bond is an instrument of indebtedness of the bond issuer to the holders. The issuer owes the holders a debt and pays them interest.
The bond which are obligated to get paid their principal and interest from issuer or its project through the revenue collection are known as "Revenue Bonds". Usually, issuer issues bonds for certain "project" and he requires capital investment hence he issues revenue bonds and the issuer pays back the interest and principal of the bonds through the receipt of the project i.e; through the revenue earned by the project.
The bond which are obligated to get paid their principal and interest from issuer or its project through the revenue collection are known as "Revenue Bonds". Usually, issuer issues bonds for certain "project" and he requires capital investment hence he issues revenue bonds and the issuer pays back the interest and principal of the bonds through the receipt of the project i.e; through the revenue earned by the project.
corporate bond
corporate bond
The prices of corporate bonds fluctuate as they are traded on the bond market. Like government bonds, a corporate bond pays a fixed amount of interest each .
The contractual interest rate is the rate at which the borrower pays and the investor receives are determined.
the bond PRICE will go DOWN
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?
the bond PRICE will go DOWN
A ten-year bond pays 11 % interest on a $1000 face value annually. If it currently sells for $1,195, what is its approximate yield to maturity