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Par Value
Examine the bond carefully. Some bonds have the value printed on them. If the bond has reached its full maturity, this is the value of your bond. If there is no value on it, you can take it to a bond specialist and have it appraised.
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.
if a bond has finite maturity or limited maturity then we must consider not only the interest rate stream but also the maturity value (face value).regardsSajida Gul
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.
at maturity
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Par Value
Examine the bond carefully. Some bonds have the value printed on them. If the bond has reached its full maturity, this is the value of your bond. If there is no value on it, you can take it to a bond specialist and have it appraised.
"Bullet" means all of the principal (Face Value) is paid at maturity. This is the most common type and also referred to as a "Straight bond". An "Amortising bond" is one where the face value is paid back progressively over the life.
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.
if a bond has finite maturity or limited maturity then we must consider not only the interest rate stream but also the maturity value (face value).regardsSajida Gul
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.
An accrual bond is a fixed-interest bond which is issued at face value and repaid at the end of the maturity period along with the accrued interest.
You would need to know a Yield To Maturity to answer this question.
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.
Nope it doesn't you suck