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The coupon rate of a bond can be determined by dividing the annual interest payment by the bond's face value, and then expressing it as a percentage.

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What is a variable rate bond?

Could somebody who knows a lot about the stocks and bonds etc. answer these question 1. what is a variable-rate bond and a treasury bond future contract 2 what is example of a money market instrument use in the market place. oh one more thing If I buy a bond with the face value of 1000.00 and the coupon rate is of 6%. and I sold it one year later for 930.00 what would be my yield rate at maturity. thanks for all your help


What are Treasury Bond Strip Rates?

Treasury Bond STRIPS are zero-coupon bonds STRIPPED from regular coupon paying Treasury Securities.Zero - Coupon bonds are simply bond instruments that pay no interim cash flows. Thezero coupon bond is the most simple type of transaction involving only two cash flows:• Money Invested Now (at discount)• Money Returned at Maturity (face amount)As bonds have a typical life longer than one year we tend to compare them on the basis of Yield to Maturity. The YTM of a zero coupon bond is a relatively simple concept that we will deal with in the next few paragraphs.The annual YTM of a five year zero coupon bond is simply the answer to the following question: What rate of interest would I need to earn on each of a series of successive one year investments such that my proceeds at the end of five years would be the same as they would be from having invested in the five year zero coupon bond?On occasion a similar question might be asked with the intention of ascertaining the 'Semi - Annual' YTM of a five year zero coupon bond: What rate of interest would I need to earn on each of a series of successive half - year investments such that my proceeds at the end of five years would be the same as they would be from having invested in the five year zero coupon bond? This half - yearly rate of return is, by market convention, then simply doubled so as to provide a yearly equivalent.More detail can be found on this at www.davidandgoliathworld.com


What is the current best fixed rate bond?

The current best fixed rate bond will depend on one's location and their personal preference. In the UK one can get a 9 month fixed rate bond at just 0.75% and that is the lowest rate.


How can one determine the risk-free rate of return?

The risk-free rate of return can be determined by looking at the yield of a government bond, typically the U.S. Treasury bond, with a maturity that matches the investment time horizon. This rate is considered risk-free because the government is unlikely to default on its debt obligations.


What is the face Value if maturity is 7 years Coupons are paid annually at rate of 5 and Yield to maturity is 7?

You're missing one of the following: * Coupon value * Bond present/purchasing value As it stands, there's insufficient information.

Related Questions

What is a variable rate bond?

Could somebody who knows a lot about the stocks and bonds etc. answer these question 1. what is a variable-rate bond and a treasury bond future contract 2 what is example of a money market instrument use in the market place. oh one more thing If I buy a bond with the face value of 1000.00 and the coupon rate is of 6%. and I sold it one year later for 930.00 what would be my yield rate at maturity. thanks for all your help


Consumers able and willinWhich of these is an element of a bond?

One common element of a bond is the coupon rate, which represents the annual interest rate paid by the issuer to the bondholder. This rate is typically fixed at the time of issuance. Other elements include the maturity date, which is when the bond reaches the end of its term, and the face value, which is the amount that the issuer agrees to repay the bondholder at maturity.


What one of these is not usually associated with bonds a coupon rate b maturity value c face amount d maturity rate?

Coupons, face amount, maturity value and maturity rate all are associated with bonds. Coupons are a type of bond and the face amount tells how much the coupon is worth until it matures, gaining interest.


What are Treasury Bond Strip Rates?

Treasury Bond STRIPS are zero-coupon bonds STRIPPED from regular coupon paying Treasury Securities.Zero - Coupon bonds are simply bond instruments that pay no interim cash flows. Thezero coupon bond is the most simple type of transaction involving only two cash flows:• Money Invested Now (at discount)• Money Returned at Maturity (face amount)As bonds have a typical life longer than one year we tend to compare them on the basis of Yield to Maturity. The YTM of a zero coupon bond is a relatively simple concept that we will deal with in the next few paragraphs.The annual YTM of a five year zero coupon bond is simply the answer to the following question: What rate of interest would I need to earn on each of a series of successive one year investments such that my proceeds at the end of five years would be the same as they would be from having invested in the five year zero coupon bond?On occasion a similar question might be asked with the intention of ascertaining the 'Semi - Annual' YTM of a five year zero coupon bond: What rate of interest would I need to earn on each of a series of successive half - year investments such that my proceeds at the end of five years would be the same as they would be from having invested in the five year zero coupon bond? This half - yearly rate of return is, by market convention, then simply doubled so as to provide a yearly equivalent.More detail can be found on this at www.davidandgoliathworld.com


Are there any coupon codes for Bail Bond Information in Anchorage, AK?

No. Because they were confidential, so one will disclose the coupon codes


What is the current best fixed rate bond?

The current best fixed rate bond will depend on one's location and their personal preference. In the UK one can get a 9 month fixed rate bond at just 0.75% and that is the lowest rate.


How can one determine the risk-free rate of return?

The risk-free rate of return can be determined by looking at the yield of a government bond, typically the U.S. Treasury bond, with a maturity that matches the investment time horizon. This rate is considered risk-free because the government is unlikely to default on its debt obligations.


What type of bond is sold below face value?

Many types of bonds may trade below face value. The reason for this is not based on the type of bond per se, but rather the conditions present in the marketplace. If a bond's coupon rate (the rate it pays its investors on a periodic basis) is below market interest rates for a bond of similar duration, the bond will trade at a discount to par (face value) since investors will have to be compensated in capital gains for what they will be missing out on yield if accepting the bond's coupon as opposed to market interest rates. (Bond prices and interest rates move opposite of one another. As market interest rates rise, the value of already issued bonds fall - sometimes below par value.)


How can one determine the present value of a bond?

To determine the present value of a bond, you need to calculate the present value of its future cash flows, which include periodic interest payments and the bond's face value at maturity. This involves discounting these cash flows back to the present using an appropriate discount rate, typically the bond's yield to maturity. The sum of these discounted cash flows gives you the present value of the bond.


What is the rate of return for an investor who pays 1054.47 for a 3-yr bond with a 7 percent coupon and sells the bond one year later for 1037.19?

What is the cash conversion cycle for a firm with $3 million average inventories, $1.5 million average accounts payable, a receivables period of 40 days, and an annual cost of goods sold of $18 million.


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.


Why does bond price decrease when yield to maturity increases?

If you buy a bond with say a 4% coupon at par when bonds of that maturity and quality are paying 4% and then market rates for that maturity and quality bond rise to say 5%, the price of your bond must drop so that the yield to the buyer equals the current market rate of 5%.