Microsoft PowerPoint - PoF.ppt

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CharacteristicsThe main aspects that can be set in a bond contract:ƒ 101

Face value (FV) / principal / par value:

original value

due at maturity!It is not the same as the market value!
ƒ

Coupon (c) / interest:

income that investor will receive

over the life of the issue.
Multi-period deterministic cash flows: FI securities - Introduction

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