Short Answer
Figure 1.2
Using the figure above, identify the labeled part.
-Label DD: ______________________________
Definitions:
Coupon Bond
A bond that pays the holder a fixed interest payment (coupon) at regular intervals until the maturity date, when the principal and final interest payment are repaid.
Yield To Maturity
The total return anticipated on a bond if the bond is held until its maturity date, taking into account its current market price, face value, interest rate, and time to maturity.
Par Value
Is the face value of a bond or stock, representing the amount that will be returned to the investor at maturity or the value at which the stock is noted on the balance sheet.
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