I have a confusion that if the bond is currently quoted at 82 ..but it's nominal value is 100 ..and let's suppose the coupon is 5% ..what redemption valvue should I put at the end of the year say if it for 4 years
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Redemption value
8y ago#1The redemption amount has nothing to do with the coupon rate or the current market value.
Unless told otherwise you assume that it is redeemed at par (i.e. nominal value of 100).
If you are told that it is redeemed at a premium, then the premium is calculated on the nominal value.
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