A company bond indicates a buying and selling fee of $124.65; a coupon price of 6.245; a maturity date of February 15, 2034; and a par price of $1,000 then You will pay $1.246.
A bond with a $1,000 par price has an 8 percent annual coupon rate. It will mature in four years, and annual coupon repayments are made at the give up of each year.
If the bondholder's required price of return (current pastime rate) equals the coupon pastime rate, the bond will sell at par, or maturity value. 2 If the contemporary activity fee exceeds the bond's coupon rate, the bond will promote under par price or at a "discount."
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