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Unformatted text preview: The bond also pays a fixed periodic payment of $C. C is known as the coupon. In the US, coupons on treasuries are paid every 6 months. In class, for simplicity, we assume that coupons are paid annually. The CF s (Cash flow) of a coupon bond are:...
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This note was uploaded on 07/27/2011 for the course BUS 106 taught by Professor Li,c. during the Winter '08 term at UC Riverside.
- Winter '08