Suppose that you buy a 1-year maturity bond for $1,000 that will pay you back $1,000 plus a coupon payment of?
115696
Considering annual coupon payment, it works out to be 6%.\nFormula is    Rate of Interest = (Interest X 10) / (Principal X No. of years)  = 6000/1000 = 6\n\nReal rate of return = Nominal return - inflation rate\nwork out ... results will be 4,2,0,-2
246852
It doesn't matter on a free to purchase investment such as a bond bond, but it can matter on stocks.\nIf you put down $100 once a week to purchase stock at a $15 buy fee, that a loss of 15% purchase power each week.  If you put in $1,000 every 10 weeks, you loose 1.5% purchase power, but the volitility on stocks can move that much in one or two days.  You might miss on the run up if you wait, but you take a big loss if your buy fee eats up a good percentage of what you want to put in.
897105
balance would be $84901.25
664294
That depends on when you got the bond.  Interest accrues on the bond at variable rates.  You can take it to your bank and they can process it to tell you how much it is worth.  If it is past its set maturity date, it will be worth more than fifty dollars.  If not, it will be worth less.  If you let bonds sit for a long time, a lot of interest can accrue, making it worth significantly more than face value.
1049967
You only pay interest on the amount of time you borrow the money it's annualized because that is the amount you'll pay if you borrower the money for one year. It's always interest on (what you still owe) So if you make additional payments towards principal you will definitely pay it off sooner, and make permanent headway if it's a fixed payment.
419136
It's possible to buy stock's for a penny a share and pay $10 in copmmission. If stock appreciates to, say, $10.00, you've earned a 999% return before commissions.
1120146
http://finance.yahoo.com/bonds
160367
Usually they sell for $1,000 each.  Savings Bonds you can buy for as little as $25.00
1060367
Yes, but you won't receive the fuill value. After only a month, you will probably only get what was paid for the bond.
488384
A bank. But know if the bond hasn't matured yet you won't get the full value of the bond
1113893
Part of it is going to depend on the bond payment set up.  They pay twice a year, but is the formal 30/360 or actual/actual?  That will make a difference in the calculation.\n\nIf it is 30/360 then the formula is\n=(250000*(.10/360)*180)\nThat formula gives you a constant payment of 12,500 every six months.\n\nIf it actual/actual you need to get the calendar out and calculate based on the actual days in each period:\n\nSeptember 2004 would be\n=(250000*(.10/366)*184)=12568.31 (point 31, yahoo is leaving it off)\nMarch 2005 would be\n=(250000*(.10/365)*181)=12397.26 (point 26)\netc etc etc
467767
It is slightly tricky unless you have access to Reuters or Bloomberg information systems, but you need to get the "zero coupon" interest rate corresponding to the time period in question.  If  you are in the US, you are in the lucky situation of having long and short term rates about the same level, so you can just use the Treasury yield.  \n\nOnce you get this rate (check out Yahoo finance) you use this equation:\n\ndiscount_factor = 1/(1+r/2)^(2*t)\n\nwhere r is the rate (in the form .05 for 5% for example) and t is the number of years to maturity of your zero coupon bond.  \n\nNote that in derivative world, professionals will often price off of LIBOR, which is fairly close to treasury rates right now.  I am assuming the issuer of this bond is a very good credit.  If they are a bad credit, like GM, then you would need to add their credit spread to the rate "r" to get the right number.\n\nFinally, to get the answer, if the face amount of the zero coupon is say $1 million then you would multiply this number by the discount_factor (which is always less than one).
72001
It depends on how much you owe at which rates, and how fast you're paying them off.  If it costs you $700 to drop 5%, you would be ahead after just a year if you owed $700 / 0.05 = $700 * 20 = $14,000.
1135181
milind_ , \n\nWill you make no payments on the $1,000 loan value(principal and interest) until the 20 years is up? And when you say the interest is 20% reducing, how exactly does interest rate decline/change during that period? If I know that then I can give you the answer. Cheers
454294
OK, I have been in banking for 13 years and I cannot understand your question- Am going to try to explain what\nI THINK I understood. \n3 month cd or treasury bills, the rate you are quoted is the APY 4% - that is the annual percentage yield - the interest you would make on that money if it was to stay in that account for 12months at that rate. But since it is a 3- month, you will have to take the money out and invest it in something else. You cannot compound it because the deal expires after 3 months - Now does that make sense ?
900883
You are correct; \n\nIf you borrow ₤1500 at the interest of 14%\n\nYou will be paying back ₤1710 as the interest is ₤210 (value of 14% of ₤1,500)\n\nYou will be paying the Principal (₤1,500) plus the interest (₤210)\ngiving you a total of ₤1710.\n\nYou are not stupid, no one knows it all.
843782
Yes if you have collateral