Coupon interest payment, Financial Management

An investor receives periodic interest payments at specified intervals till the date of holding or maturity. However, the holder of zero coupon bonds, who buys the bond at a price below the par value, is not paid interest periodically; instead, he receives the interest at the time of maturity. Investors are paid the par value at the time of maturity. The difference between the par value and the purchase price gives us the interest the investor receives.

Posted Date: 9/10/2012 1:34:15 AM | Location : United States

Related Discussions:- Coupon interest payment, Assignment Help, Ask Question on Coupon interest payment, Get Answer, Expert's Help, Coupon interest payment Discussions

Write discussion on Coupon interest payment
Your posts are moderated
Related Questions
Q. Show the Accept-Reject Criteria? Accept-Reject Criteria:- If the actual payback period is not more than the predetermined payback period...................... Project

A yield spread between any two bond issues can be easily computed when the maturity date for both these issues is same. The yield spread between these two bond

Explain the difference between the discounted free cash flow model as it is applied to the valuation of common equity and as it is applied to the valuation of complete businesses.

An asset-backed security is a type of bond or note that is based on a pool of assets, or collateralized by the cash flows from a specified pool of underlying assets. As

Ratios A great number of ratios might be appropriate for this purpose depending on the specific kind of financial performance which is being compared. Amongst those appropriate

Reinvestment risk is the risk involved in reinvesting the proceeds received from the issuer against callable bonds. During falling interest rate periods, investor canno

What are the advantages and disadvantages of the internal rate of return method? The internal rate of return process is a discounted cash flow method and a number expressed as

Clearing and Settlement The Treasury Bills are available in physical form if an investor desires so. The market is mostly dominated by institutional players who have a facility

The issuers of ALBS are the financial subsidiaries of automobile manufacturers, commercial banks and other independent finance companies and small financial insti

Q. What do you signify by Receivables Management? Ans. Receivable Management: - The term receivables refer to debt outstanding to the firm by the customers resulting from sale