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This will be a lower amount than what is on the band. You would need to pursue the investment in order to receive the full amount of interest.

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11y ago

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A bond pays semiannual interest of 50 They mature in 15 years and have a par value of 1000 The market rate of interest is 8 percent The market value of the bonds is?

To calculate the market value of the bonds, we can use the present value of future cash flows formula. The bond pays $50 semiannually, resulting in 30 payments (15 years x 2). The market interest rate is 8% annually, or 4% semiannually. The present value of the annuity (interest payments) and the present value of the par value at maturity can be calculated and summed to find the market value of the bond, which is approximately $1,165.51.


What happens When a bond sells at a premium?

When a bond sells at a premium, it means it is sold at a price higher than its face value. This indicates that the bond's interest rate is higher than the current market interest rates. Investors pay a premium to secure a higher yield, which results in a lower effective yield compared to the coupon rate.


In a non-interest bearing note the maturity value is the same as the?

issue value, however, normally sold at a discount. Payment of the note and interest is made at the end of the loan.


Why might the market value of a loan differ from its outstanding balance?

The balance of a loan depends on the original contract rate, whereas the market value of the loan depends on the current market interest rate.


What factors may cause a change in the market and fair value of fixed rate notes and bonds?

One of the key factors that can change the market and fair value of fixed rate notes and bonds is an increase or decrease in market interest rates. Even though a bond has a fixed rate, it's value is dependent on current yields in the market and the value of the bond will move inversely to interest rate changes.


A ten-year bond pays 11 percent interest on a 1000 face value annually If it currently sells for 1195 what is its approximate yield to maturity?

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


What is the face value of the share?

Share can have mutliple values at a time. Face value of share is the value written on share document while market value of share is the value at which share is currently selling in capital market. For Example: when a new share issued by company value on share is $10 which is face value. After one year of issue of share, share is selling in market at $12 which is it's market value.


How are bonds in the stock market defined?

by the interest rate they pay thier face value and their term


What is the current value of mortgage stock on the market?

The current value of mortgage stock on the market fluctuates based on various factors such as interest rates, economic conditions, and investor demand. It is not a fixed value and can change daily.


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.


How do you calculate the value of a bond?

The value of a bond is calculated by adding up the present value of its future cash flows, which include periodic interest payments and the bond's face value at maturity. This calculation takes into account factors such as the bond's interest rate, time to maturity, and the current market interest rates.


What is the value of a 1987 US prestige proof set?

Numismedia quotes a market value of $39 as of 05/2012.