Question
The rate of return (calculated yearly) Coupon Rate Maturity Par Value Yield
Answer
4.1
(254 Votes)
Carys
Professional · Tutor for 6 years
Answer
The question seems to be incomplete and does not provide a specific problem to solve. However, the terms provided are all related to bonds and their rate of return.
Explanation
## Step1: The question seems to be incomplete. It asks for "The rate of return (calculated yearly)" but does not provide a specific context or problem to solve. However, I can explain what each term means in the context of bonds.## Step2: The Coupon Rate is the annual interest rate paid by the issuer of the bond to the bondholder. It is expressed as a percentage of the bond's face value (or par value).## Step3: Maturity is the date on which the bond will expire and the principal amount of the bond will be paid back to the bondholder.## Step4: Par Value is the face value of a bond, or the amount that the bond issuer promises to repay to the bondholder at the time of maturity.## Step5: Yield is the rate of return earned on a bond if it is held until maturity. It is calculated as the annual interest payment plus any gain (if the bond was purchased at a discount) or minus any loss (if the bond was purchased at a premium), divided by the average price of the bond.