PAP moves to counter criticism of party, govt in cyberspace
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When you purchase a bond, it is discounted, the discounting is compound interest. It's a zero coupon bond as I stated.Originally posted by socrates:Just stop this argument about bond. It is a totally waste of time.
To SIS, you are right about the nature of the bond, but if the investors use the money received from the couple to reinvest in bond, you can get back compounded interest. However it may also means you will never get back your full capital and interest
To maurizio13, strictly speaking the nature of the bond is not compound interest. Your example of US treasury bond is not giving compounded interest. -
Zero coupon bonds are bonds which do not pay periodic interest payments, or so-called "coupons". Zero coupon bonds are purchased at a discount from their value at maturity. The holder of a zero coupon bond is entitled to receive a single payment, usually of a specified sum of money at a specified time in the future. Some zero coupon bonds are inflation indexed, so the amount of money that will be paid to the bond holder is calculated to have a set amount of purchasing power rather than a set amount of money, but the majority of zero coupon bonds pay a set amount of money known as the face value of the bond.
In contrast, an investor who has a regular bond receives income from coupon payments, which are usually made semi-annually. The investor also receives the principal or face value of the investment when the bond matures.
Zero coupon bonds may be long or short term investments. Long-term zero coupon maturity dates typically start at ten to fifteen years. The bonds can be held until maturity or sold on secondary bond markets.
Short term zero coupon bond generally have maturities of less than one year and are called bills. The U.S. Treasury bill market is the most active and liquid debt market in the world.
http://en.wikipedia.org/wiki/Zero_coupon_bond
The truth is they tell u the final amount u get after a period of time. U know how much u spend, u know how much u gonna get at the end. In the middle is the profit u made. Why will tis be compounded interest ?
U mixed up valuation with wat bond actually is. Valuation tell u how much it worth and how much u should pay for it, but the real physical bond is still without compound interest. -
Originally posted by stupidissmart:
Ok. Thanks for the info.
[b]Zero coupon bonds are bonds which do not pay periodic interest payments, or so-called "coupons". Zero coupon bonds are purchased at a discount from their value at maturity. The holder of a zero coupon bond is entitled to receive a single payment, usually of a specified sum of money at a specified time in the future. Some zero coupon bonds are inflation indexed, so the amount of money that will be paid to the bond holder is calculated to have a set amount of purchasing power rather than a set amount of money, but the majority of zero coupon bonds pay a set amount of money known as the face value of the bond.
In contrast, an investor who has a regular bond receives income from coupon payments, which are usually made semi-annually. The investor also receives the principal or face value of the investment when the bond matures.
Zero coupon bonds may be long or short term investments. Long-term zero coupon maturity dates typically start at ten to fifteen years. The bonds can be held until maturity or sold on secondary bond markets.
Short term zero coupon bond generally have maturities of less than one year and are called bills. The U.S. Treasury bill market is the most active and liquid debt market in the world.
http://en.wikipedia.org/wiki/Zero_coupon_bond
The truth is they tell u the final amount u get after a period of time. U know how much u spend, u know how much u gonna get at the end. In the middle is the profit u made. Why will tis be compounded interest ?
[/b]
I didn't know specified means, they tell you the final amount after a period of time. I suppose face value also means they tell you the final amount after a period of time.
Nevermind. Go find a lecturer in finance to teach you, since you in University, it shouldn't be that difficult. Else you can go over National Library and read up on bond pricing and present value. Good luck.
No point explaining to you. You are not a person who is adept in maths, just take it like you think it is, a bond has no compounded interest in it's valuation. -
Forgot which thread IÂ’ve read which discussed about 84 MPs vs. 50 MPs.
So I just post it here. Can read the report about Blackie in todayÂ’s New Paper On Sunday.
ItÂ’s about an Ambassador Of Love called Blackie. SheÂ’s been living at a void deck of block 835, Yishun for the past 3 years. Duirng this time, sheÂ’s a friend to the children and cats living in the neighbourhood, a companion to the elderly and provided solace to those who lost lost their loved ones.
Then a nincompoop alerted the AVA and center for animal welfare and control(CAWC) about Blackie. She almost got impounded. You know what that means. She would have been put to sleep.
Fortunately, one group of residents were determined to save Blackie. They sought the help of their MP.
MP Lee Bee Wah would adopt the dog if worse comes to worst.
S h it ! Is it a problem to let Blackie stay on to continue her good work?
Shame, shame PAP MPs. You see, Blackie is a 4 year old mongrel !
She has managed to do what many PAP MPs would never be able to do: to bring bond and harmony within the community, regardless of race and religion.
Dear PAP MPs, you all are not even as capable as a mongrel! You all have a lot more to learn from a Blackie !
All dogs go to heaven. Long live, Blackie.
Let cancer grow or kidneys fail on PAP MPs!