# What is the Difference between coupon rate and required return of a bond?

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The difference between the coupon rate and the required return of a bond is dependent upon the type of bond. Junk bonds will have the biggest difference between its return and the coupon rate.
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# What is the difference between the coupon rate and the interest rate?

Coupon rate is something that is paid semiannually. The interestrate is something that starts as soon as a bond is issued.

# What is the difference between yield and coupon rate?

yield is the return on investment, for example dividend paid. coupon is the rate of interest related to bonds or debentures.

# What is the rate of return for an investor who pays 1054.47 for a three-year bond with a 7 coupon and sells the bond one year later for 1037.19?

What is the cash conversion cycle for a firm with \$3 millionaverage inventories, \$1.5 million average accounts payable, areceivables period of 40 days, and an annual cost of g

# What is the relationship between coupon rate on a bond and security provisions?

Coupon Rate: The actual interest rate on the bond, usually payable in semiannual installments. The coupon rate normally stays constant during the life of the bond and indicat

# What is relationship between a bond coupon rate and its duration?

bond coupon rates and yield rates have very similar effects and a very similar relationship to duration, lemme explain, by first explain durations effects in relation to inter

# Difference enters bond's coupon interest rate the current yield y bond-holder's required rate of return?

Difference enters bond's coupon interest rate the current yield y bondholder's required rate of return? .

# What is the difference between discount rate and coupon rate?

For this answer we have to know the six categories of premioum: a. Inflation premium(more risk): high inflation means tha investors will require a higher return in order to in

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# Difference between coupon rate and yield to maturity?

The coupon rate is the actually stated interest rate. This is the rate earned on a NEW issue bond. The yield to maturity takes into consideration the purchase price of a bond

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# What is the relationship between coupon rate and bond price?

The Bond price is the amount of the bond when it becomes mature. The coupon rate is the amount of interest payable on the bond. Bonds have three major components The firs

# Relationship between required rate of return and coupon rate on the value of a bond?

required rate of return is the 'interest' that investors expect from an investment project. coupon rate is the interest that investors receive periodically as a reward from

# Do higher coupon bonds give a higher rate of return?

according to the come rates the returns we get if we purchase higher rated coupon bonds we get higher returns

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# When the market rate of return for a particular bond is much less than its coupon rate the bond is selling at?

If the current interest rate is lower than the coupon rate, a bondwill be priced at a premium. For example, a bond originally issuedat par with a 5% coupon would initially yie

# How do bondholders get a return on zero coupon bonds?

Zero coupon bonds do not pay interest and are therefore sold at a steep discount to face value depending on the maturity date of the bond. Due to the time value of money, the