Economy, asked by npafho9492, 1 year ago

Difference between coupon rate and required rate of return

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Answered by ymy34513

0

The Difference Between a Bond's Yield Rate and Its Coupon Rate. A bond's coupon rate is the rate of interest it pays annually, while its yield is the rate of return it generates. A bond's coupon rate is expressed as a percentage of its par value. ... To purchase a bond at a discount means paying less than par value.

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