When calculating the present value of a bonds future cash flows, do investors use the coupon rate

Question:

When calculating the present value of a bond’s future cash flows, do investors use the coupon rate or market interest rate as the discount rate?

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...

Fantastic news! We've Found the answer you've been seeking!