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Because the rate of return it is still a function of market influences. Whether a bond is premium or discount is merely a reference of the coupon rate vs the real market interest rate. If the issuer sets their coupon rate below the market rate, it is said to be discounted. Set the coupon rate above the market interest rate and it is said to be premium. An invester pays below face value for a discount bond and above for a premium. In the end, the invester receives a return on their investment that aligns with the real market interest rates. Premium vs Discount is merely a reference point from where you start - you still end up in the same place.
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Distinguish between deep discount bond and zero coupon bond?
the main difference between deep discount bond and zero coupon bond is that in case of zero coupon bond no int is payable periodically while in case of deep discount bond int is payable periodically at very lower rate say 2% per annum
How do investors make money on zero-coupon bonds?
The bond sells at a discount from its face value--sometimes a BIG discount. At the date of maturity, the bond will give you the full face value.
What is it called when a bond is selling for less than its face value?
A bond selling for less than its face value is classified as being sold at a discount. A bond can sell at a discount if interest rates increase or if the repayment ability of the bond issuer becomes questionable due to a reduction in the credit rating of the issuer.
Sardar sarovar nigam deep discount bond current status of this bond?
I am mira maji vill po siddha dt purba medinipur west bengal & my son kalyan kumar maji with the sameaddres having some deep discount bond how we get money
What does it mean when bonds are issued at a discount?
When a bond is issued at a discount, it is issued for a price less than par (face value). For example, if you were to purchase a bond with a face value of one thousand dollars for nine-hundred and eighty dollars, you bought the bonds at a discount because you purchased it for less than the bond will pay out at maturity. To calculate the 98, you would divide the purchase price by the par value.
What are synonyms for bargain?
good buy, discount purchase, steal, giveaway
Distinguish between deep discount bond and zero coupon bond?
the main difference between deep discount bond and zero coupon bond is that in case of zero coupon bond no int is payable periodically while in case of deep discount bond int is payable periodically at very lower rate say 2% per annum
Where can I find discount running shoes?
You can get discount running shoes at a swap meet if they are around your area. Vendors sell them cheap and you can bargain with them. You buy and take home the same day.
What is a discount on bonds payable account in accounting?
All bonds have a stated or "par" value, which is the value that the bond will hold after the bond term is completed at maturity (par value is usually $1000 per bond). When a bond is issued at a discount, it means that a company issued the bond for less than the par value (i.e less than $1000). The original discount is calculated as the difference between the par value and the bond sale price, and it is amortized over the life of the bond.
How do investors make money on zero coupon bonds?
The bond sells at a discount from its face value--sometimes a BIG discount. At the date of maturity, the bond will give you the full face value.
How do investors make money on zero-coupon bonds?
The bond sells at a discount from its face value--sometimes a BIG discount. At the date of maturity, the bond will give you the full face value.
What is a synonym for a covenant?
Pact, contract, binding agreement.
Where can I get a discount on auto part prices?
For comparing rate for auto parts I usually find a good bargain at a local salvage yard. If searching on the internet there are many discount auto places such as www.autopartsplace.com.
What is it called when a bond is selling for less than its face value?
A bond selling for less than its face value is classified as being sold at a discount. A bond can sell at a discount if interest rates increase or if the repayment ability of the bond issuer becomes questionable due to a reduction in the credit rating of the issuer.
Where can you buy kajeet phones?
You can buy them direct from the discount page at http://www.kajeeet.com/bargain Use promo code BARGAIN to save 15% on your total purchase, including sale and refurbished phones. This promo code has NO expiration!
Sardar sarovar nigam deep discount bond current status of this bond?
I am mira maji vill po siddha dt purba medinipur west bengal & my son kalyan kumar maji with the sameaddres having some deep discount bond how we get money
When is the best time to buy a barbecue?
The best time to buy it will be in Winter as it is off season for Barbecue and you may get a discount. Alternatively you can buy one on sale or special offers if you are looking for a discount or bargain purchase
