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Q: What is the connection between a bond principal and interest?
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What is a principal of a bond?

The principal of a bond is the amount of a bond that interest rates are paid on by the person issuing it. I like to think of it as the initial amount the bond is worth. Example: Hudson Corporation issued a $10,000 bond at 14% interest. The $10,000 is the principal of the bond.


What is the difference between the bond's principal and the bond's par value?

Shaken not stirred.


What is a connection between two things?

A bond.


What is a fico strip bond?

A FICO strip bond serves the same purpose a regular savings bond. However, with a FICO strip bond, you can hold individual interest and principal components .


What is a connection between 2 atoms called?

The connection between two atoms is chemical bond. This is used in science.


What is the difference between interest rate risk and reinvestment rate risk?

Reinvestment risk When interest rates are declining, investors have to reinvest their interest income and any return of principal, whether scheduled or unscheduled, at lower prevailing rates.Interest rate risk When interest rates rise, bond prices fall; conversely, when rates decline, bond prices rise. The longer the time to a bond's maturity, the greater its interest rate risk.


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 fico strip?

A FICO strip bond serves the same purpose a regular savings bond. However, with a FICO strip bond, you can hold individual interest and principal components .


Is an ionic bond a connection between two cations?

No, an ionic bond is formed between a cation and an anion.


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.


What is a yield to maturity?

A yield to maturity is the internal rate of return on a bond held to maturity, assuming scheduled payment of principal and interest.


What is a 4 letter word meaning connection between people?

bond