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What is the name of interest payments that a bondholder receives for purchasing a bond?

Apex- Coupon


What is the name of the interest payments that a bondholder receives for purchasing a bond?

Apex- Coupon


What is the name of the interest payments that bond holder receives for purchasing a bond?

The interest payments that bond holders receive for purchasing a bond are called coupon payments. These payments are typically made semi-annually at a fixed rate specified at the time the bond is issued.


Just like CDs bonds reach at which point the amount paid for the bond is returned to the bondholder?

Bonds reach maturity when the principal amount paid for the bond is returned to the bondholder. At maturity, the bond issuer repays the face value of the bond to the bondholder, along with any remaining interest payments.


What face value of a bond is the amount a bondholder?

The face value of a bond, also known as its par value, is the amount that the bondholder will receive from the issuer at maturity. It is typically set at $1,000 for corporate bonds, but can vary for different types of bonds. This value does not include any interest payments, which are made periodically until the bond matures. Essentially, the face value represents the original investment amount that the bondholder is entitled to at the end of the bond's term.


What does a bond represent?

A bond represents a company or organizations debt to you the bondholder.


What are considered the three main components of a bond?

The three main components of a bond are the face value, coupon rate, and maturity date. The face value, or par value, is the amount the bondholder receives at maturity. The coupon rate is the interest rate paid by the issuer to the bondholder, typically expressed as a percentage of the face value. The maturity date is when the bond's principal is repaid, marking the end of the bond's term.


Can you explain what coupon frequency is and how it impacts the value of a bond?

Coupon frequency refers to how often a bond pays interest to its holder, typically semi-annually or annually. The higher the coupon frequency, the more often the bondholder receives interest payments, which can impact the overall value of the bond. Bonds with higher coupon frequencies are generally more attractive to investors because they provide a more regular income stream.


When is a bond's per value generally repaid?

A bond's face value is typically repaid to the bondholder at maturity. This represents the principal amount borrowed by the issuer, which is returned to investors along with any final interest payments.


What is known as the value of the bond that is paid back at maturity?

The value of the bond that is paid back at maturity is known as the "face value" or "par value." This is the amount that the bond issuer agrees to repay the bondholder at the end of the bond's term. It is typically set at a round figure, such as $1,000, and does not change over the life of the bond. Interest payments, or coupon payments, are calculated based on this face value.


What is A call-protected bond?

A call-protected bond is a type of bond where the issuer is restricted from redeeming or calling it back before its maturity date. This means that the bondholder can rely on receiving interest payments and the principal amount at maturity without the risk of early repayment.


Can you explain what coupon frequency means?

Coupon frequency refers to how often interest payments are made on a bond or other fixed-income security. It indicates the number of times per year that the issuer of the bond will pay interest to the bondholder. For example, a bond with a coupon frequency of semi-annual means that interest payments are made twice a year.