Bonds are a common long-term debt instrument. They are interesting because they are issued with a stated interest rate.
Posted: Mon May 30, 2022 7:03 am
Bonds are a common long-term debt instrument. They are
interesting because they are issued with a stated interest rate.
Unlike the market interest rates, a bond's stated interest rate
will never change. The stated interest rate is what will be paid to
the investor over the bond's life. This means that the only way to
manipulate the total amount earned or paid from bonds is by
adjusting the selling price:
Note: Please give me step by step examples so I can get a better
understanding of the questions. - Thank you
interesting because they are issued with a stated interest rate.
Unlike the market interest rates, a bond's stated interest rate
will never change. The stated interest rate is what will be paid to
the investor over the bond's life. This means that the only way to
manipulate the total amount earned or paid from bonds is by
adjusting the selling price:
Note: Please give me step by step examples so I can get a better
understanding of the questions. - Thank you