Elif owns a bond that will pay her $75 each year in interest plus a $1,000...
Elif owns a bond that will pay her $75 each year in interest plus a $1,000 principal payment at maturity. What is the $75 called? What is the $1,00 called? What other information would Elif need to calculate the value of this bond? (Please Show Work, Thank You So Much in Advance!)
Homework Answers
Coupon amount will be paid at agrred intervals and Face Value of Bond will be redeemed at Maturity.
$ 75 is called as Coupon amount and $ 1000 is called as Face Value / Par Value of Bond.
Value of Bond = PV of Cash Flows from it.
to discount future CFs we need the Discount Rate.
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Caculate the PH THANK YOU!
[OH−] = 1.9×10−7 M
[OH−] = 1.6×10−8 M
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