a)
To determine: Whether the bond is trading at par, premium, or discount.
Introduction:
A bond is a debt instrument with which the shareholder credits cash to an entity; this can be the government or an organization that scrounges finance for a distinct timeframe, at a predefined interest rate. Coupon rate is the expressed as an interest rate on a fixed income security, similar to a bond. It is also called as the interest rate that the bondholders get from their investment. It depends on the yield as on the day the bond is issued.
b)
To determine: The Yield to Maturity of the bond.
Introduction: A Yield to Maturity (YTM) is the
c.
To determine: The
Introduction: A bond is a debt instrument with which the shareholder credits cash to an entity; this can be the government or an organization that scrounges finance for a distinct timeframe, at a predefined interest rate. Coupon rate is expressed as an interest rate on a fixed income security, similar to a bond. It is also called as the interest rate that the bondholders get from their investment. It depends on the yield as on the day the bond is issued.
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