A firm issues a bond at par value. Shortly thereafter, interest rates fall. If you calculate the

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A firm issues a bond at par value. Shortly thereafter, interest rates fall. If you calculate the coupon rate, coupon yield, and yield to maturity for this bond after the decline in interest rates, which of the three values is highest and which is lowest? Explain.
Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...
Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...
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