Im learning about bonds, and i need someone to clarify some things for me. i dont know if this is right or not, but from what i have understood is that, when u purchase a bond, its present value is calculated, and it is less than the par value of the bond. so if i were to purchase a bond, do i pay the par or the present value? and the bond equals present value of par value + present value of interest annuity. so here is an example. the par value is 100$, let say interest is 34$. to buy it to day i pay 66$, then after it matures i get 100? or do i pay 100$ when i buy them? thanks
2007-12-08
13:45:38
·
3 answers
·
asked by
fmsaleen
1
in
Other - Business & Finance