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oksian1 [2.3K]
3 years ago
8

How does a bond issuer decide on the appropriate coupon rate?

Business
1 answer:
allochka39001 [22]3 years ago
3 0
Bond issuers look at outstanding bonds of similar maturity and risk. The yields on such bonds are used to establish the coupon rate necessary for a particular issue to initially sell for par value. Bond issuers also simply ask potential purchasers what coupon rate would be necessary to attract them.The coupon rate is fixed and simply determines what the bond’s coupon payments will be. 
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Achieving the goal of price stability with low and steady inflation allows the Fed to achieve other​ goals, such as stable inter
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The answer to this question can be defined as follows:

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I will also take a glance at the answer from a tax viewpoint if a competent payment decreases subject to tax salaries and further decreases taxable income. It is a great way for both management and workers and employers receive big profits without taxation. Its value of a qualified retirement benefit provided for both the worker increases the amount that can be spent on behalf of the company by providing an eligible program.

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