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corporate bond

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Era Boyer

Lvl 10
3y ago

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A what pays interest to the investor?

corporate bond


What is Contractual interest rate on a bond?

The contractual interest rate is the rate at which the borrower pays and the investor receives are determined.


What is uncapitalised interest?

It is interest that is paid separately. For an investor, it is paid out to the investor and not rolled into the investment.


Where does the interest on a 4 year zero coupon go?

It goes to the investor who buys the bond. A zero coupon bond is a bond in which, the investor need not pay any premium (coupon) above the face value of the bond while purchasing it. Let us say a company issues a $10,000 bond at a discount of 10% with zero coupon, it is enough if the investor pays $9000 to buy the bond. At the time of maturity he would get back $10,000. This 10% discount can be compared to the interest earned on the investment for the investor.


Who pays the interest you get from your bank?

The bank pays it to you. The interest reflects the return on the capital you have loaned to the bank.


What type of interest pays interest on principal only?

simple interest


Can you explain what the coupon rate is on CDs?

The coupon rate on CDs is the fixed interest rate that the issuer pays to the investor. It is expressed as a percentage of the CD's face value and is paid out regularly, typically on a monthly or quarterly basis.


How can SEBI protect the interest of investor in securities?

1962


What type of annuity pays you a flat interest rate?

A tax deferred fixed annuity pays a flat interest rate.


How does an investor get ownership interest in a company?

by purchasing shares in the company


What is repaid to the investor on a bond's maturity date?

The principle and interest.


Who pays interest on the national debt?

The people do.