Explore BrainMass

Cash Flow from a Bond

You are considering buying a U.S. government bond with the face value of $1000. The bond pays an annual coupon payment of $80 and it matures in 5 years. The bonds coupon rate is 8%. What are the cash flows associated with owning this bond for each year?

Solution Preview

Year Cash flow
0 -Price of the bond ( cannot be calculated ...

Solution Summary

Identifies Cash Flow from a Bond