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1. Finance Midterm Study

Quiz yourself by thinking what should be in each of the black spaces below before clicking on it to display the answer.
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Question
Answer
Face Value/Principle   Par value, due at bond maturity. Notional amount of a bond used to compute interest payments.  
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Coupon Rate   Determines the amount of each coupon payment of a bond.  
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Premium Bond   The price the bond trades at is greater than its face value.  
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Discount Bond   The price the bond trades at is less than its face value.  
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Zero-Coupon   A single future payment.  
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Interest Paying Bond   Annuity with an additional final future payment.  
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Created by: Elisahbeth
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