Welcome to Westonci.ca, your one-stop destination for finding answers to all your questions. Join our expert community now! Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.
Sagot :
3.11% is the yield on a 10-year zero-coupon bond with a par value of $1,000 if it is purchased for $490.
What is zero-coupon bond?
Bonds with zero coupons do not accrue interest during their entire lifespan. Rather, buyers of zero coupon bonds pay a significant discount over the bond's face value, which is the sum they will be paid when the bond "matures" or becomes due.
Bonds with no coupon typically have lengthy maturity dates; many take ten, fifteen, or even more years to reach their final maturity. These lengthy maturity dates enable a shareholder to budget for a long-term objective, like paying for a child's college tuition. A small amount of money that will grow over many years can be put up by an investor with the deep discount.
Zero coupon bonds of various types, issued by a variety of issuers, are available for purchase by investors in the secondary markets.
To learn more about zero-coupon bond from the link:
https://brainly.com/question/28487377
#SPJ4
Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. We appreciate your time. Please come back anytime for the latest information and answers to your questions. Thank you for choosing Westonci.ca as your information source. We look forward to your next visit.
