Finc Investment - Discussions

1. The coupon rate is also known as the stated rate. How is this interest generally paid? Is there any time when no cash flow is received from a bond? 

2. Discuss how investors arrive at a desired rate of return for a bond 

3. Explain why a bond’s yield-to-maturity is the “effective rate” that the holder of the bond expects to receive 

4. Briefly discuss the relationship between the formulas used to calculate (a) the after-tax yield, and (b) the taxable equivalent yield of a bond 

Make sure to include references