ECON 2560 Chapter Notes - Chapter 6: Accrued Interest, Current Yield, Interest Rate

47 views3 pages

Document Summary

Annual interest payment as a percentage of face value. Coupon interest earned from the last coupon payment to the purchase date of the bond. Present value of a received each of t periods, at various interest rates. Annual coupon payment divided by current bond price. Bond that sells for more than its face value. Bond that sells for less than its face value. Interest rate for which the present value of the bond"s payments equals the price. Finding what a bond is going to get you at maturity in total: for the same coupon rate. Each year and interest rate r = discount rate = stands for the current rate that of other investments with similar risk or does it stand for the interest rate that corporations charge investors? value. Or we could say that it is 103. 882 percent of face. If there are so many years that you can t write it for every year.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents

Related Questions