How does a bond's par value differ from the market value?

Explain the difference between a bond's coupon rate, current yield and required rate of return. After answering the question, provide a detailed example of a current bond (price, coupon, YTM, time, etc) and using the data you have created, provide a calculation for one of the variables (for example, what is the present value, or what are the coupon payments).

(You may choose which variable to calculate. Provide the inputs from the financial calculator to arrive at the solution)

Answer rating: 100% (QA)

A bonds par value is the face value of the bond which is the amount of money the bond issuer will repay to the bondholder at maturity The market value ... View the full answer