Bonds, Instructor's Manual
The coupon payment is equal to the face value times the coupon rate, as stated on the bond. That is, Recall a discount bond promises to pay the bondholder the face value when the bond matures, but there are no coupon payments of interest. Hence a discount bond is sometimes called a “zero-coupon” bond. Determining the Price of a Discount Bond. The market price of a bond is simply the ... ................
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