How do you cash in a zero coupon bond from 1984 with a maturity date of may 2009?

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The bond has matured so if you're the owner of the bond you should have already received payment. If you haven't, contact the issuer to see if there's an error or the law firm that's handling that issuer's bankruptcy.
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Can you compute the price of a 5-year zero coupon bond from 2 5 year coupon bonds?

Five-Year Zero Coupon \n. \nIf the 2 5 years are exactly the same with the exception of having coupons (same lender, same claims, same everything) then yes you should be able to. The trick is finding the right yield curve and discounting everything back to the present value. The coupons can be tr (MORE)

How or where can you cash in a tiger zero coupon bond?

Go to your local discount broker, (Schwab, Ameritrade, E*trade, Scottrade) open an account and they will cash it in or liquidate it for you. There will be a fee associated with the transaction. Shop around, prices vary. If they can't (or won't) do it, have them give you the name and address of the t (MORE)

What is usually a better investment- a coupon bond or discount bond?

Coupon bond= pay $A now. receive future periodic coupon and at maturity receive face value Discount bond= pay $B now. receive nothing until maturity where you receive face value. B is always less than A. That is, you pay less upfront investing in Discount Bond compared to Coupon Bond. But, you (MORE)

What are zero-coupon debentures or bonds?

\n. \nA zero coupon bond pays no interest. Thus the market price for such a bond is always LESS than the maturity (face) value. The amount by which the bond is priced below its maturity value is known as the DISCOUNT. For example, a $100 zero coupon bond maturing in one year priced to yield 10% (MORE)

What is the yield to maturity for a bond that has 10 years until maturity and a coupon rate of 8 sells for 1100?

YTM= 6.602%. ------------------------------------------------------------------------------------. I got a different answer, I got YTM 6.67% . 80 - 10 (80 coupon -100 cap loss / 10 years) __________________ 1,110 + 1,000 / 2 (purchase price + 1,000 par /2) . therefore, 70 / 1,050 = 6 (MORE)

If you cashed in Series E bonds do you pay tax on the total matured value or just the interest?

The interest earned on your savings bonds is subject to federal income tax, which can be deferred until redemption, final maturity, or other taxable disposition, whichever occurs first. Savings bonds are subject to estate, inheritance, gift, or other excise taxes, whether federal or state. (Basicall (MORE)

What is a bond coupon?

Most bonds have two parts: the coupons and the corpus. The corpus represents the principal; the coupons the interest. Coupons have redemption dates printed on them; you turn in your coupon to receive the interest payment.

How can a matured Merrill Lynch TIGR bond be cashed?

The TIGR bonds were issued by Manufacturers Hanover Trust Company. You can see that in the lower right hand corner by the signature of the issuer. Manufacturers Hanover was acquired by JP Morgan Chase, which has farmed out its bond and trust services to US Bank. For instructions on how to redeem the (MORE)

If two bonds have the same maturity the same yield to maturity and the same level of risk the bonds should they sell for the same price regardless of the bond's coupon rate?

if two bonds offer the same duration and yield, then an investor should look at their levels of convexity. if one bond has greater convexity, it is less affected by interest rate changes. also, bonds with higher convexity will have higher price than bonds with lower convexity regardless whether inte (MORE)

What is a coupon bearing bond?

A coupon bearing bond is a bond with a flat yield curve. This is a non interest bearing bond. There really would be no sense in purchasing a bond that does not gather any interest.

Why do coupons have cash value?

Back in the Late 1950s early 1960s as kids we would receive cash from stores with coupons. Coupons were only worth about 1-5 cents then but with 25 cents you could buy a lot, so coupons were a way to support your ice cream cone habit etc.

What does it mean when a bond matures?

When a bond matures, it is at the end of the term and is ready to collect. You can either take the money or open another bond or CD with that money to lock the money away for the same amount of time so that it accrues more money in interest.

What is non-zero coupon bonds?

if a bond has finite maturity or limited maturity then we must consider not only the interest rate stream but also the maturity value (face value). regards Sajida Gul

How does the yield to maturity on a bond differ from the coupon yield or current yield?

The rate of return anticipated on a bond if held until the end ofits lifetime. YTM is considered a long-term bond yield expressed asan annual rate. The YTM calculation takes into account the bond'scurrent market price, par value, coupon interest rate and time tomaturity. It is also assumed that all (MORE)

If you have a 10 percent coupon bond with 19 years left to maturity the bonds make annual payments and currently sells for 1102.05 what is the YTM?

A bond that pays 1 coupon(s) of 10% per year, that has a market value of $1,102.05, and that matures in 19 years will have a yield to maturity of 8.87%. What does it mean? Well, bond investors don't just buy only newly issued bonds (on the primary market) but can also buy previously issued bonds f (MORE)

Difference between coupon rate and yield to maturity?

The coupon rate is the actually stated interest rate. This is the rate earned on a NEW issue bond. The yield to maturity takes into consideration the purchase price of a bond bought in the secondary market. For example, if you buy a $1,000 bond for $1100 which matures in 10 years and has a coupon of (MORE)

Can you cash a matured CD at any bank?

No. A Matured CD can be cashed only at the bank branch that issued the CD. Let's say you opened a CD with Bank of America in New York, you need to take the CD certificate to a bank of America branch in New York to cash it. If you take it to Chase bank in New York, they won't be able to help you beca (MORE)

Why do people like zero coupon bonds?

Zero coupon bonds are sold at a price well below face value. Thus, these bonds are appealing to the small investor because they can be bought far more cheaply than ordinary debt obligations. The discount is usually from 50 to 75 percent.

What are the interest rates for zero coupon bonds?

They pay no 'coupon' which is the income paid periodically. You make a return by buying at a discount. As an example, if you buy a zero coupon bond for $86.26, maturing at $100 over 5 years, you would earn 3% p.a.

How do bondholders get a return on zero coupon bonds?

Zero coupon bonds do not pay interest and are therefore sold at a steep discount to face value depending on the maturity date of the bond. Due to the time value of money, the discount on a 30 year zero coupon bond will be much greater than on a 10 year zero coupon bond. At maturity bondholders wi (MORE)

What is zero coupon and how is it calculated to maturity?

A zero coupon bond is a bond which pays no interim cashflow (i.e. coupons). We usually price on the basis of percentage of Face Value (i.e. $100). So if you expected 5% return, semi annually, over the 3 years remaining on the life of a ZC Bond, the price would be; 100/(1+Yield/frequency)^(TermXfr (MORE)

What is the taxation of zero coupon bonds held to maturity?

Zero coupon bonds issued by the US Treasury are issued at adiscount to face value. An investor holding zero coupon bonds ispaid the full face value when the zero coupon bond matures. The difference between the purchase price and the maturity value isknow as the original issue discount which represe (MORE)

What is so special about Zero Coupon Municipal Bonds?

Zero Coupon Municipal Bonds are special because, unlike other bonds, they have no periodic interest payments. Rather, the investor receives one payment at maturity. This payment is equal to the amount invested, plus the interest earned, compounded semiannually.

What is the advantage of buying zero-coupon bonds?

The advantage of buying zero-coupon bonds is that when they reach maturity, the investor then receives the full face value of the bond. These bonds became popular in the 1980's even though they were first released in the 1960's.

What is a zero coupon?

A zero coupon is, in a financial sense, a security which does notpay interest periodically.

What is a zero-coupon note?

A zero-coupon note is a note which pays at maturity the value ofthe note with no separate interest payments.

Will a Series EE savings Bond pay interest beyond its maturity date?

Upon maturity the Series EE savings bond stops paying interestwhich brings up an interesting option for holders of maturedsavings bonds. Since the banks are paying close to zero on savingsthere is really no financial penalty for holding the Series EEbonds past the maturity date. In addition, federal (MORE)