Annual interest expense is the:（）
A: sum of the annual coupon payments.
B: amount paid to creditors in excess of par.
C: book value of the debt times the market interest rate when it was issued.
A: sum of the annual coupon payments.
B: amount paid to creditors in excess of par.
C: book value of the debt times the market interest rate when it was issued.
举一反三
- a bond offers an annual coupon rate of 4%, with interest paid semiannually. The bond matures in two years. At a market discount rate of 6%, the price of this bond per 100 of par value is closest to
- If the annual market discount rate is 6%, the value of a three-year bond that has a 7% coupon rate, has a maturity (par) value of $1,000, and pays interest annually is closest to: A: $1,026.73. B: $1,049.17. C: $973.76.
- The coupon rate of bond is the interest rate specified in the bond, which is equal to the ratio of the annual interest over the value of bond.
- The value of a 10-year, 6% coupon $100 par value bond with semiannual payments, assuming an annual discount rate of 7%, is closest to
- A 10-year bond was issued four years ago. The bond is denominated in US dollars, offers a coupon rate of 10% with interest paid semi-annually, and is currently priced at 102% of par. The bonds A: tenor is six years B: nominal rate is 5% C: redemption value is 102% of the par value