which is a (7.4) A bond's yield to maturity should not be confused with its bond's annual coupon divided by its price. Unless the market value of the bond is equal to its the yield to maturity is determined by using a(n) approach. (7.5) A allows the company to repurchase or "call" part or all of the bond issue at stated prices over a specific period. The difference between the and the is the call premium. Call provisions are often not operative during the first part of a bond's life. This is a ; during this period of prohibition, the bond is said to be

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Bond Valuation

Bond valuation are the notes issued by the corporation to raise long-term funds for the business. The corporations are required to pay the interest on such liabilities at a specified rate of interest (termed as coupon rate) at specified dates which may be on semi-annual or annual basis. These interest payments may be in the form of coupons.