The effective interest rate of a bond is usually the market interest rate and the bond’s yield-to-maturity (as opposed to the interest rated stated on the face of the bond). The effective interest rate of a bond is the rate that will discount both the bond’s future interest payments...
A coupon rate is the yearly interest rate payout on a bond that is communicated as a percentage of the value of the bond...
What is Bond Premium Amortization? Discussion Comments Byanon328655— On Apr 04, 2013 What I would like to know is why do you subtract the discount from the interest expense. How does the discount correlate with interest expense? WiseGeek, in your inbox ...
Similarly, when the BoC drops the overnight rate, banks will often lower their prime rates. Additionally, things like the bond market, costs of long-term deposits, and competition for funds also play a role in determining the prime rate. What is the prime interest rate in Canada? As of ...
But interest rates fall to 1%. Now, the coupon on their bond is more attractive than current market rates so investors would be willing to pay a premium—above par value—for the bond. If an investor sells when the bond is trading at a premium, they can profit from the capital appreciat...
1. What is the coupon rate? A、Yield on the issue date. B、Amount to be repaid at maturity. C、Rate of return earned by the investor. D、Interest rate specified in the bond indenture. 点击查看答案手机看题 你可能感兴趣的试题 单项选择题 互联子系统为,完全集成在综合监控系统内的,专业自动化...
The correct interest rate for this amortization spreadsheet is 0.88%. I think the reason you came up with an interest rate that was half my rate is that your calculation assumed the insurance company had the use of the full $100,000 premium during all 5 years. That's just not true ...
In general, the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk, liquidity risk...
A premium bond is a bond trading above its face value, or in other words; it costs more than the face amount on the bond. A bond might trade at apremiumbecause its interest rate is higher than current rates in the market. These bonds are different from a type of lottery bond account ...
If interest rates fall, the bond's price would rise because itscoupon payment is more attractive. The further rates fall, the higher the bond's price will rise. In either scenario, the coupon rate no longer has any meaning for a new investor.But if the annual coupon payment is divided b...