If the effective annual yield on a bond is equal to the bondʹs coupon rate, the bond will have a market value that is

Business

1 answer:

Mazyrski [523]1 year ago

4 0

Answer:

The coupon rate is the stated periodic interest payment due to the bondholder at specified times. The bond's yield is the anticipated overall rate of return. If the bond's price changes and is no longer offered at par value, the coupon rate and the yield will no longer be the same as the coupon rate is fixed and yield is a derivative calculation based on the price of the bond.

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