Question

what will be the price of bond with face value rs 1000 carrying a coupon of 10% maturing in 3 years at 10% premium on par value?

Answer 1

Answer:

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Explanation:

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Answer 2

Answer:

Coupon rate is calculated by adding up the total amount of annual payments made by a bond, then dividing that by the face value (or “par value”) of the bond.

For example: ABC Corporation releases a bond worth $1,000 at issue.

Every six months it pays the holder $50.