bonds

CFA Level I
#1

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

#2

yup

#3

TRUE

#4

Absolutely. And even zero coupon bonds! Important to remember that.

#5

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

#6

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

#7

That is, semi-annual compounding convention.

#8

JoeyDVivre Wrote: ------------------------------------------------------- > We’re going to assume zero-coupon bonds pay > semi-annual coupons? Huh? zeroes pay nothing

#9

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