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The price of a bond is equal to the sum of the interest payments and the face amount of the bonds?
Wiki User
∙ 9y ago
This is how you make money on the bonds. You will put in the money and will receive that money and the interest on it at the end of the term.
Wiki User
∙ 9y ago
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Is the issue price of bonds equal to the present value of the principal plus the present value of the interest?
The price of bonds are not equal to the present value and principal upon purchase. The interest is accrued over a certain time period, then collected.
Is fully amortized note requires equal payments including interest and principal until the loan is paid off?
Yes. Each payment you make, regardless of the day it is made contains a pre determined amount of principal and interest (usually 30 days).
When a series of equal periodic payments is put into an interest bearing account for a specific number of periods?
Annuity
How does one get a lower mortgage rate?
One percent of the mortgage amount will equal one point.The more upfront interest payments or points paid at one time at the beginning of the loan process the lower the mortgage rate will be. Use of the mortgage calculator will show how much this amount will be.
If a company borrows money from a banks as an installment note the interest portion of each annual payment will?
Equal the interest rate on the note times the carrying amount of the note at the beginning of the period.
What is so special about Zero Coupon Municipal Bonds?
Zero Coupon Municipal Bonds are special because, unlike other bonds, they have no periodic interest payments. Rather, the investor receives one payment at maturity. This payment is equal to the amount invested, plus the interest earned, compounded semiannually.
What is the accounting entries for purchasing a car on installment basis?
Credit to Liabilities for the amount of the loan. Credit to liabilitites for the amount of interest on the amount of the loan.(this can be entered monthly to keep better track of) Debit to cash for the amount of the payment made. (this amount should be equal after the payments are completed to the addition of the loan amount and interest.)
Why do bond prices and yields vary inversely?
Bonds are valued by discounting the coupon payments and the final repayment by the yield to maturity on comparable bonds. The bond payments discounted at the bond’s yield to maturity equal the bond price. You may also start with the bond price and ask what interest rate the bond offers. This interest rate that equates the present value of bond payments to the bond price is the yield to maturity. Because present values are lower when discount rates are higher, price and yield to maturity vary inversely.
Is the issue price of bonds equal to the present value of the principal plus the present value of the interest?
The price of bonds are not equal to the present value and principal upon purchase. The interest is accrued over a certain time period, then collected.
Is fully amortized note requires equal payments including interest and principal until the loan is paid off?
Yes. Each payment you make, regardless of the day it is made contains a pre determined amount of principal and interest (usually 30 days).
What was the APR if paid 195 interest on a 2000 purchase made 12 equal monthly payments?
17.5
When a series of equal periodic payments is put into an interest bearing account for a specific number of periods?
Annuity
An annuity may be defined as?
which may be defined as a series of consecutive payments or receipts of equal amount.
How does one get a lower mortgage rate?
One percent of the mortgage amount will equal one point.The more upfront interest payments or points paid at one time at the beginning of the loan process the lower the mortgage rate will be. Use of the mortgage calculator will show how much this amount will be.
Where can I find about car loan amortization?
When a loan payment is made towards a loan, a part of the payment is for the interest and part of it is applied to the principal amount. This process of making equal payments to pay off a loan over its life is loan amortization.
Can you refuse an offer for ppi claim?
Yes. If their offer doesn't equal the amount you paid in ppi payments then you can refuse their offer.
What if your firm wants to purchase a 50000 dollar computer no money down the 50000 will be paid off in 10 equal end of year payments at 8 percent interest what are the annual end of year payments?
5400.00
