Bonds are long-term debt obligations primarily issued by governments and corporations. Bond pricing is based upon...

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Bonds are long-term debt obligations primarily issued bygovernments and corporations. Bond pricing is based upon thepresent value of the future cash flows generated by the bonds. Thisincludes periodic interest and principal repayment. The discountrate applied to the bond reflects the investor’s required rate ofreturn

Prompt: Bonds are long-term debt obligations primarily issuedby governments and corporations. Bond pricing is based upon thepresent value of the future cash flows generated by the bonds. Thisincludes periodic interest and principal repayment. The discountrate applied to the bond reflects the investor’s required rate ofreturn. Write a paper about the factors that are included in thediscount rate.
Requirements: 500 words minimum, APA formatting and threepeer-reviewed references are required

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What is a Bond Discount Bond discount is the amount by which the market price of a bond is lower than its principal amount due at maturity This amount called its par value is often 1000 BREAKING DOWN Bond Discount The primary features of a bond are its coupon rate face value and market price An issuer makes coupon payments to its bondholders as compensation for the money loaned over a fixed period of time At maturity the principal loan amount is repaid to the investor This amount is equal to the par or face value of the bond Most corporate bonds have a par value of 1000 Some bonds are sold at par at a premium or at a discount A bond sold at par has its coupon rate equal to the prevailing interest rate in the economy An investor who purchases this bond has a return on See Answer

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Bonds are long-term debt obligations primarily issued bygovernments and corporations. Bond pricing is based upon thepresent value of the future cash flows generated by the bonds. Thisincludes periodic interest and principal repayment. The discountrate applied to the bond reflects the investor’s required rate ofreturnPrompt: Bonds are long-term debt obligations primarily issuedby governments and corporations. Bond pricing is based upon thepresent value of the future cash flows generated by the bonds. Thisincludes periodic interest and principal repayment. The discountrate applied to the bond reflects the investor’s required rate ofreturn. Write a paper about the factors that are included in thediscount rate.Requirements: 500 words minimum, APA formatting and threepeer-reviewed references are required