5 Matching Annotations
  1. Oct 2023
  2. Jul 2020
  3. www.investopedia.com www.investopedia.com
    1. Face value is the money amount the bond will be worth at maturity; it is also the reference amount the bond issuer uses when calculating interest payments. For example, say an investor purchases a bond at a premium $1,090 and another investor buys the same bond later when it is trading at a discount for $980. When the bond matures, both investors will receive the $1,000 face value of the bond.The coupon rate is the rate of interest the bond issuer will pay on the face value of the bond, expressed as a percentage. For example, a 5% coupon rate means that bondholders will receive 5% x $1000 face value = $50 every year.Coupon dates are the dates on which the bond issuer will make interest payments. Payments can be made in any interval, but the standard is semiannual payments.The maturity date is the date on which the bond will mature and the bond issuer will pay the bondholder the face value of the bond.The issue price is the price at which the bond issuer originally sells the bonds.
    1. Terms such as "common enterprise" are imperfectly defined
    2. Even if an investment is not labeled a "stock" or "bond," it may very well be a security under the law, meaning that registration and disclosure requirements apply
    3. It is an investment of money There is an expectation of profits from the investment The investment of money is in a common enterprise Any profit comes from the efforts of a promoter or third party