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The Formula CID = π X R2 X L X

question 34

Multiple Choice

The formula CID = π x R2 x L x N is used to calculate _____.


Definitions:

Par Value

Par value is the face value of a bond or the stock value stated in the corporate charter, which signifies the minimum price that the securities can be issued for.

Coupon Rate

The interest rate on a bond, expressed as a percentage of the bond's face value, paid by the bond issuer to the bondholder.

Current Yield

A bond’s annual coupon payment divided by its price. Differs from yield to maturity.

Coupon Bond

A type of bond that pays the holder a fixed interest amount (coupon) at regular intervals until maturity, at which point the principal amount is returned.

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