A zero-coupon bond: A. pays no interest B. pays interest at a rate less than the market rate C. is a junk bond D. is sold at a deep discount at less than the par value Bonds: Bonds are financi...
A zero-coupon bond is a type of bond that does not pay periodic interest (coupon payments) to the bondholder. Instead, it is sold at a discount to its face value, and the investor receives the face value of the bond when it matures. What are zero-coupon bonds? Here are some key poi...
ZERO-COUPON BONDS A zero-coupon bond (also called a pure-discount bond) is a bond that makes no payments until its maturity.Its par value,which is paid at maturity,is the combined repayment of principal and all the interest over the bond's life.Despite the seeming difference,Equation (5.1...
Yield to maturity (YTM) is an important metric used in bond markets that describes the total rate of return that is expected from a bond once it has made all of its scheduled interest payments and repays the original principal amount.Zero-coupon bonds(z-bonds), however, do not have reoccu...
The holders of a zero-coupon bond do not receive interest payments, however, they typically purchase the bond at a price much lower than the maturity value; thus, the return earned by the holders of a zero-coupon bond is the difference bet...
A zero-coupon bond issued 3 years ago with a par value of 1 000 has 7 yearsremaining to maturity.If the annual rate associated with the bond is 8 percent,the value of the bond is closest to:[单选题]A.577B.583C.790 相关知识点: 试题来源: 解析 A 正确答案:A答案解析:N = 7 ×...
Zero-coupon bondsAlso known as "strips," these are bonds that do not make periodic interest payments. In other words, there's no coupon. Instead, you buy the bond at a discount on its face value and receive one payment of the full face value at maturity. For example, you might pay ...
1A coupon bond which pay interest annually,has par value of $1000,matures in 5 years and has a yield to maturity of 12%.IF the coupon rate is 9%,the intrinsic value of the bond today will be息票债券,每年支付利息,票面价值为1000美元,在5年内到期,到期收益率为12%.如果票面利率为9%,今天...
A) Zero Coupon Bonds B) Bonds with annual annuities C) Bonds with bi-annual annuities D) Bonds with continuous compounding E) Bonds with dirty pricing Generally, we need to know the amount of interest expected to be generated each year, the time horizon (how long until the bond ma...
A zero-coupon bond is a bond issued to raise capital but without any coupon (interest) payments. The only cash inflow for a zero coupon bond is the...Become a member and unlock all Study Answers Start today. Try it...