bonds

[reg]

unless otherwise stated, is it advisible to assume all bonds pay semi-annual (instead of annual) coupons?

 

[jo_l]

yup

 

[shahravi123]

TRUE

 

[mcf]

Absolutely.

And even zero coupon bonds! Important to remember that.

 

[JoeyDVivre]

We're going to assume zero-coupon bonds pay semi-annual coupons? Huh?

 

[daj224]

reg Wrote:
-------------------------------------------------------
> unless otherwise stated, is it advisible to assume
> all bonds pay semi-annual (instead of annual)
> coupons?


tricky, in grad school, we assume annual,m in CFAI i think they want u to assume semi

 

[mcf]

That is, semi-annual compounding convention.

 

[daj224]

JoeyDVivre Wrote:
-------------------------------------------------------
> We're going to assume zero-coupon bonds pay
> semi-annual coupons? Huh?


zeroes pay nothing

 

[mib20]

yes, we will assume that theoretical coupon rate on a zero pays semi annually