Explain why the yield of a bond that trades at a discount exceeds the bond's coupon rate?
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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...
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Bonds trading at a discount generate a return ...View the full answer
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