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Po =I (PVIFA kdn) + M(PVIF kdn) = $225 = $ 1,000 (PVIF) note 1 = 0 since this is a zero coupon bond. (PVIFkd, ) =0.317

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How do savings bonds work?

When you buy a savings bond, you get a coupon payment periodically during the lifetime of the bond (typically 3%-4% of the face value), and when the bond matures, you get the original amount of money you paid back as well as the final coupon payment.


What is coupon payment?

A coupon payment is the periodic interest payment made to bondholders during the life of a bond. It is typically expressed as a percentage of the bond's face value and is paid at regular intervals, such as annually or semiannually. The coupon payment compensates the bondholder for lending their money to the issuer, whether it's a corporation or government entity. Once the bond matures, the principal amount is also returned to the bondholder.


What is the taxation of zero coupon bonds held to maturity?

Zero coupon bonds issued by the US Treasury are issued at a discount to face value. An investor holding zero coupon bonds is paid the full face value when the zero coupon bond matures. The difference between the purchase price and the maturity value is know as the original issue discount which represents the interest earned on the zero coupon bond. Although a zero coupon bond does not pay annual interest, an investor must pay taxes each year based on the imputed receipt of income. Since the investor is not receiving interest payments during the life of the bond, taxes would be paid on interest income not actually received until bond maturity. Due to the yearly tax liability on imputed interest, it makes sense for most investors to hold zero coupon bonds in a tax deferred retirement account. The interest earned on zero coupon bonds issued by the US Treasury are exempt from state and local taxes.


A corporation with a marginal tax rate of 34 percent would receive what after-tax dividend yield on a 12 percent coupon rate preferred stock bought at par assuming a 70 percent dividend exclusion?

A corporation with a marginal tax rate of 34 percent would receive what after-tax dividend yield on a 12 percent coupon rate preferred stock bought at par assuming a 70 percent dividend exclusion?


How to Get a Budget Coupon Code?

If you are planning on renting a car from Budget in the near future, you should consider finding a Budget coupon code. There is no reason to pay full price if you don't have to, and you might be surprised by all of the savings you can benefit from if you use a coupon code. The best way to find these codes is to search on the Internet.

Related Questions

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Coupon codes for bouquet delivery can be found at websites, such as Ultimate Coupons, Proflowers, Retailmenot and Offers. Coupon codes can enable purchase of bouquet delivery with ten percent or more discount.


Where can you purchase a shoebuy coupon?

One can not purchase a ShoeBuy coupon, but one can find a ShoeBuy coupon on the either the Bard's Deals website, or the Retail Me Not website, which has daily coupon deals.


How do you calculate interest rates on a 5.1 percent bond sold in 2011 that matures in 7 years?

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Where can I purchase a food coupon organizer online?

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What is the value of a bond that has a par value of 1000 a coupon of 120 annually and matures in 10 years?

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Sherwin Williams Coupon?

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Can you use a Macy's coupon retroactively, if you still have the receipt?

No, you need to use the coupon at the time of purchase. You can use it on your next purchase from Macy's, however.


Can I use a coke coupon to purchase sprite?

Yes, you can use a coke coupon to purchase sprite. You could use a coke coupon because Coca Cola is the company that makes both coke and sprite. If the coupon was made specifically for coke then no you cannot.


How can I tell if my coupon is for single items or entire purchase?

To determine if the 30% is for the entire purchase or only for one item, read the front and back of the coupon. If it is not written on the coupon, ask an employee at the local store.