4. Are coupon payments generally paid annually or every six months?

5. Bond Valuation: Explain how valuing a bond is similar to valuing an annuity plus an additional lump sum as done in the TVM chapter. In general, how is a bond valued?

6. A. What is a zero coupon bond? How is it valued? Is it ever a premium bond? Why is a zero coupon bond also known as a pure discount bond (or instrument)?

Answer rating: 100% (QA)

Coupon payments on bonds are typically paid semiannually although some bonds may have dif... View the full answer