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Yield to Maturity

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Issue:

Business

 

Written by:

Drew L

 

Date added:

October 10, 2014

 

Level:

University

 

Grade:

A

 

No of pages / words:

4 / 1041

 

Was viewed:

2752 times

 

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The most important is what a bond is. Bond is a paper issued to represent when a company or government borrows money from public or banks and agrees to pay it back later. The amount of money borrowed is the par value of a bond. Usually, this amount is $1,000. The third concept is coupons payments, which are like interest...
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Usually, this amount is $1,000. The third concept is coupons payments, which are like interest. The company makes regular payments to the bondholders, like every six months or every year. A written agreement between the company and the bondholders is the legal stuff, call indenture. It is declared the amount of the coupons payments and when the money (par value) is going to be paid back to the bondholders...
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