Describe the basic features of each of the following types of bonds: a. Floating rate bonds b.

Question:

Describe the basic features of each of the following types of bonds:
a. Floating rate bonds
b. Original issue deep discount bonds
c. Zero bonds
d. Extendable notes (put bonds)

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...