How can I learn more about corporate bonds ?
SOUTH LAKE asked:
If a bond matures in 2 years and has a coupon of 6 %
and costs $90 does that mean I can earn 6 % annually plus another 10 % if I hold until maturity ?
If a bond matures in 2 years and has a coupon of 6 %
and costs $90 does that mean I can earn 6 % annually plus another 10 % if I hold until maturity ?
What are the risks ?
It will pay 6% interest (based on face value) until maturity at which time you get back the principal.