ARITHMETIC OF FINANCE 2
Mathematics SSS 3 First Term
WEEK 4
ARITHMETIC OF FINANCE 2
Performance Objectives
Student should be able to:
- To solve problems in the capital market by calculating interest on bond, debenture and share.
- Understand the concepts of income tax and value-added tax.
Content
Bonds, Debenture and Shares
Bond
A formal long term contract between a borrower or debtor or bond issuer usually a corporation or the government and a lender or creditor or bondholder is called a bond.
The bondholder gets interest known as coupon. The bondholder gets interest known as coupon every year on the principal (phase value) at a specified interest rate known as bond rateat specified date called the maturitydate. The bondholder receives the.... View More
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