bond par bond

Par Bond Overview, Bond Pricing Formula, Example. A par bond is a bond that currently trades at its face value. The bond comes with a coupon rate that is identical to the market interest rate. As the interest rate continually fluctuates, par bonds are uncommon to see. Understanding a Par Bond A bond’s coupon rate is the rate of interest paid by the bond issuers on th… See more

Par Bond Overview, Bond Pricing Formula, Example
Par Bond Overview, Bond Pricing Formula, Example from www.motors-mania.com

Web  One is a par bond with a 1% coupon, and the other is a premium bond with a 3% coupon. We invest $1 million in each bond and assume a 1% reinvestment rate. The comparison demonstrates that if.

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