Compare and contrast between bonds issued with coupon rate and zero-coupon bonds

Compare and Contrast

Explanation:

Bond with a coupon rate

The bond issued with coupon rate has an interest rate which is used to calculate the interest payment or income. This bond is issued on the market value.

Zero-coupon Bond

The zero-coupon bond is a bond that does not have any interest and does not pay interest or receive interest income. This bond is issued at a deep discount value.

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.