ch 7 interest rates and bond valuation Flashcards
1
Q
coupons
A
regular interest payments to make
2
Q
face value/par value
A
the amount repaid at the end of the loan
3
Q
coupon rate
A
annual coupon divided by the face value
4
Q
maturity
A
the number of years until the face value is paid
5
Q
yield to maturity (YTM)
A
interest rate required in the market on a bond
- to determine the value of a bond on a particular date
6
Q
A
