Examlex
Which of the following structures passes through the opening labeled 4 in the diagram?
Required Rate
A rephrased definition: The minimum return rate required by investors to consider investing in a particular asset or project.
Coupon Interest Rate
Stated rate of interest on a bond, defined as the coupon payment divided by the par value.
Market Value
Market value is the current price at which an asset or company can be bought or sold in the marketplace, reflecting the value the market places on it.
Call Provision
Gives the issuing corporation the right to call the bonds for redemption. The call provision generally states that if the bonds are called, the company must pay the bondholders an amount greater than the par value, a call premium. Most bonds contain a call provision.
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