A bond is a loan to a government, agency, or company that is repaid with interest. Bonds can complement stocks and other more aggressive investments in a portfolio. The IOUs of the financial world, bonds represent a government's, agency's, or company's promise to repay what it borrows—...
Par value– this is the face value. We also call it theprinciple. It is the sum of money the lender will receive when the bond has reached maturity. In most cases, the par value of bonds are $1,000 or $100. Coupon rate–this isthe percentage rate of interest, which the issuer typ...
A bond is similar to an I.O.U. This means your lending the government or agency money. Instead of the government or agency writing out a sticky note to you saying how much they need to pay you back, they give you a bond with a specified amount that is owed back to you....
Why would someone buy a bond at a premium? What is the effective interest rate for a bond? What is the face value of a bond payable? How do you compute the selling price of a bond? What is the stated interest rate of a bond payable?
Price:The price of a bond is what you pay to own the bond. It may be the face value, but it may also be more—a premium—or less—a discount—than the face value if you’re buying it on a secondary market. Maturity:Maturity is the length of time before the bond must be repaid...
Typically, a bond is issued at a discount or premium depending on themarket rate of interest. The bondholder pays the face value of the bond to the bond issuer. The bond is then paid back to the bondholder at maturity with monthly, semi-annual, or annual interest payments. ...
The attractive intermolecular interaction between iodine or bromine atoms of perfluorocarbon halides and anions or heteroatomic sites of hydrocarbons is robust enough to overcome the low affinity between perfluorocarbons and hydrocarbon...
Every corporate bond has the possibility that the company may default on the debt. An investor needs to weigh in both the operating income and cash flow as compared to the debt. If it’s the other way around, then there is a higher possibility of credit or default risk. Hence, a credit...
A bond is a fixed-income security that reflects a lender's debt to a borrower, and it is basically of two types: corporate bonds and government bonds...Become a member and unlock all Study Answers Start today. Try it now Create an account Ask a question Our ex...
A bond is a loan to a company or government that pays investors a fixed rate of return. Long-term government bonds historically earn an average of 5% annual returns.