Question

Difference between effective annual rate and bond coupon

Answer 1

Answer:

The coupon rate is the rate of interest being paid off for the fixed income security such as bonds. ... Usually, the coupon rate is calculated by dividing the sum of coupon payments by the face value of a bond. Bonds are issued by government and companies in order to raise capital to finance their operations.

Answer 2

Explanation:

✔️The coupon rate is the rate of interest being paid off for the fixed income security such as bonds. ... Usually, the coupon rate is calculated by dividing the sum of coupon payments by the face value of a bond. Bonds are issued by government and companies in order to raise capital to finance their operations.