Question: Bernie purchased 20 bonds with par values of 1 000
Bernie purchased 20 bonds with par values of $ 1,000 each. The bonds carry a coupon rate of 9% payable semiannually. How much will Bernie receive for his first interest payment?
Relevant QuestionsSandy has a choice between purchasing $ 5,000 in Treasury bonds paying 7% interest or purchasing $ 5,000 in BB rated corporate bonds with a coupon rate of 9.2%. What is the risk premium on the BB rated corporate bonds? Timothy has an opportunity to buy a $ 1,000 par value municipal bond with a coupon rate of 7% and a maturity of five years. The bond pays interest annually. If Timothy requires a return of 8%, what should he pay for the ...If the Sampsons should consider bonds, should they invest in corporate bonds or municipal bonds? Factor into your analysis the return they would receive after tax liabilities, based on the bonds having a $ 1,000 par value ...Discuss return and risk as they relate to bond mutual funds. What type of risk are all bond funds subject to? What other risk is associated with some bond funds? Describe the trade off between risk and the expected return of ...What is a closed end fund? Describe how closed end funds function.
Post your question