If you are an online trader, or wish to be so, you can trade markets and products through two different ways. First is through a full-service, also may known as traditional, brokerage firms. Second is through a discount brokerage firms. First way is costly but is usually safer as there shall be experienced/educated fellows who can help you in making right decisions. Second way is less-costly but demands you to make all decisions your own.
demonstrations.wolfram.com The Wolfram Demonstrations Project contains thousands of free interactive visualizations, with new entries added daily. See how the price of a bond with a face value of 1000 changes by manipulating the discount rate, the coupon (as percentage of face value), and the number of coupon payments prior to maturity. Contributed by: Frederic Erler

Help answer the question about bond discount rate

The answer key says the discount rate is 10%. Is that the same as the effective interest rate?
5 year bond, due on maturity $1 million, coupon rate 5% paid annually by issuer, bond purchased fo fair value of $810,460. How do you calculate the effective interest rate?

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