ARITHMETIC OF FINANCE 2

Mathematics SSS 3 First Term

WEEK 4

ARITHMETIC OF FINANCE 2

Performance Objectives

Student should be able to:

  1. To solve problems in the capital market by calculating interest on bond, debenture and share.
  2. 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 rate at specified date called the maturity date. The bondholder receives the.... View More

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