Consider a 4 percent coupon U. S. Treasury note that has a $ 10,000 face value and
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Consider a 4 percent coupon U. S. Treasury note that has a $ 10,000 face value and matures 10 years from today. This note pays interest semiannually. The current market interest rate on this bond is 3 percent. Would you expect the bond to be a discount, premium, or par bond? Calculate the actual price of the bond using the PV formula.
CouponA coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...
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Premium bond because the coupon rate exceeds the market rate Pric...View the full answer
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