The two future cash flows used to determine a bond value are the periodic coupon payments and the ________ at maturity

Fill in the blank(s) with the appropriate word(s).

Answer: principal payment

Business

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Which of the following is NOT a purpose of Service Transition?

A. To ensure that a service can be managed, operated and supported B. To provide training and certification in project management C. To provide quality knowledge of Change, Release and Deployment Management D. To plan and manage the capacity and resource requirements to manage a release

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Which one of the following statements correctly describes the major drawback of a zero-coupon bond?

A) Unless the bond is held in a tax-sheltered account, the investor must pay taxes on the annual accrued interest even though no interest is actually received. B) The conversion feature found on most zero-coupon bonds generally requires the investor to switch to a coupon-bearing bond after a period of 5 years. C) The lack of an annual coupon basically prohibits the investor from locking in a high rate of return. D) Because there is no reinvestment of a coupon payment, large capital losses accrue when interest rates decline.

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