What is a coupon and how does it relate to bond investing? 2. How do companies determine

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What is a coupon and how does it relate to bond investing?

2. How do companies determine the coupon rate for their bonds, and what factors affect this rate?

3. What is the difference between a bond's coupon rate and its yield to maturity?

4. What are some common types of bonds that pay coupons, such as zero-coupon bonds or floating-rate bonds?

5. What happens to a bond's price if interest rates change, and how do investors consider these changes when evaluating bonds?

Related Book For answer-question

Global Strategy

ISBN: 9780357512364

5th Edition

Authors: Mike W. Peng

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Posted Date: May 07, 2024 03:31 PM

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What is a coupon and how does it relate to bond investing? 2. How do companies determine

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Expert Answer:

1 In the context of bond investing a coupon refers to the periodic interest payment made to bondholders by the issuer of a bond It is the fixed annual interest rate that the bond issuer promises to pa... View the full answer

Global Strategy

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