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The coupon value is usually 1/000 of a cent. They can also be 1/20 or 1/1000 of a cent. The face value is how much the coupon takes off your bill.

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12y ago

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What is the face value of the coupon you are referring to?

The face value of a coupon is the amount of money it is worth before any discounts or promotions are applied.


Can you change the value of a coupon to less than its original amount?

Yes, the value of a coupon can be changed to less than its original amount, but this typically depends on the terms and conditions set by the issuer. Retailers may adjust the coupon value during promotional events or if the terms allow for partial redemption. However, once a coupon is issued, its original value generally cannot be altered by the consumer. Always check the specific rules associated with the coupon for any limitations.


What is coupon rate?

Coupon rate is simply just the annual coupon payments paid by the issuer relative to the bond's face or par value.Coupon rate can be calculated by dividing the sum of the security's annual coupon payments and dividing them by the bond's par value. For example, a bond which was issued with a face value of $1000 that pays a $25 coupon semi-annually would have a coupon rate of 5%.Source: investopedia


What is a zero-coupon note?

A zero-coupon note is a note which pays at maturity the value of the note with no separate interest payments.


A bond 5 years to maturity and a coupon rate of 6 percent has a face value of 20000 Interest is paid annually If you required a return of 8 percent on this bond what is the value of this bond?

To find the value of the bond, we need to calculate the present value of its future cash flows, which include annual coupon payments and the face value at maturity. The annual coupon payment is 6% of the face value, which is $1,200. Using a discount rate of 8%, the present value of the coupon payments and the face value can be calculated as follows: [ PV = \frac{1,200}{(1 + 0.08)^1} + \frac{1,200}{(1 + 0.08)^2} + \frac{1,200}{(1 + 0.08)^3} + \frac{1,200}{(1 + 0.08)^4} + \frac{1,200 + 20,000}{(1 + 0.08)^5} ] Calculating this gives a bond value of approximately $17,490.66.

Related Questions

What is the face value of the coupon you are referring to?

The face value of a coupon is the amount of money it is worth before any discounts or promotions are applied.


Are the Entertainment coupon books a good value?

It depends on how much you use the services provided in the coupon book. They are a great value if you use the services.


I need to print a coupon for tonight 19 buy one and get free of equal value Can you help me to get ?

I need to print a coupon for tonight 19 buy one and get free of equal value Can you help me to get this coupon?


Can you change the value of a coupon to less than its original amount?

Yes, the value of a coupon can be changed to less than its original amount, but this typically depends on the terms and conditions set by the issuer. Retailers may adjust the coupon value during promotional events or if the terms allow for partial redemption. However, once a coupon is issued, its original value generally cannot be altered by the consumer. Always check the specific rules associated with the coupon for any limitations.


PV of 31 year zero coupon bond with a YTM of 8 par Value 1000?

present value zero coupon=1000/(1.08)31


What is coupon rate?

Coupon rate is simply just the annual coupon payments paid by the issuer relative to the bond's face or par value.Coupon rate can be calculated by dividing the sum of the security's annual coupon payments and dividing them by the bond's par value. For example, a bond which was issued with a face value of $1000 that pays a $25 coupon semi-annually would have a coupon rate of 5%.Source: investopedia


What is a double coupon?

it is a coupon that has double The value of the coupon will be doubled. I found that most of my local store will only double up to $1.00. So if the value was $0.75 they would only give you credit up to $1.00 not $1.50. I hope this helps, Rachel


What is a zero-coupon note?

A zero-coupon note is a note which pays at maturity the value of the note with no separate interest payments.


What is the current price of a municipal bond with a coupon rate of 6.75 that is trading at par value?

The current price of a municipal bond with a coupon rate of 6.75 that is trading at par value is 1,000.


How do bondholders get a return on zero coupon bonds?

Zero coupon bonds do not pay interest and are therefore sold at a steep discount to face value depending on the maturity date of the bond. Due to the time value of money, the discount on a 30 year zero coupon bond will be much greater than on a 10 year zero coupon bond. At maturity bondholders will receive the full face value of the bond which provides bondholders a return. For example, a 30 year zero coupon bond with a face value of $1,000 and sold for $500 would return a $500 profit after 30 years. Holders of zero coupon bonds can sell the bonds at any time before maturity. If an investor bought zero coupon bonds prior to a steep drop in interest rates, the value of the zero coupon bonds would increase and could be sold at a profit.


How do you calculate interest on a bond?

To calculate interest on a bond, you need to know the bond's face value (or par value), the coupon rate, and the frequency of interest payments. The interest, or coupon payment, is determined by multiplying the bond's face value by the coupon rate and then dividing by the number of payment periods per year. For example, if a bond has a face value of $1,000 and a coupon rate of 5%, the annual interest would be $50, or $25 if paid semi-annually.


Is zero coupon bond more sensitive to change in interest rate than fixed coupon bond?

The zero coupon bond is more sensitive to change in rate (inflation) because the market value is not based on a fixed coupon.