Camp Douglas Dirigibles has a bond outstanding with four years to maturity, a face value of $1,000,

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Camp Douglas Dirigibles has a bond outstanding with four years to maturity, a face value of $1,000, and an annual coupon payment of $100. What is the price of the Camp Douglas bond if its yield-to-maturity is 12%? If its yield-to-maturity is 8%? Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...
Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...
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Fundamentals of Investments

ISBN: 978-0132926171

3rd edition

Authors: Gordon J. Alexander, William F. Sharpe, Jeffery V. Bailey

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