What would you like to do?

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

already exists.

Would you like to merge this question into it?

already exists as an alternate of this question.

Would you like to make it the primary and merge this question into it?

exists and is an alternate of .

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 indicates what the bondholder's annual dollar incomes will be.

Bond Security Provisions:
  • Secured Debt: Specific assets are pledged to bondholders in the event of default (inability to pay the debt).
  • Mortgage Agreement: Real property is pledged as a security (collateral) for the loan.
  • After-acquired property clause: Requires any new property to be placed under the original mortgage.


Specific security provisions can determine the coupon rate. Due to the specific asset claims in a secured bond most companies will opt for the unsecured debt as it will give the bondholder a claim against the corporation as oppose to a lien against an asset.
Thanks for the feedback!

What is the relationship between heartbeat and pulse rate?

A heart beat is when your heart makes a 'thump' noise which means it is pumping blood. Pulse rate is when you time how many times your heart beats per minute.

Relationship between security cooperation and security assistance?

Security Assistance is the group of programs authorized by the Foreign Assistance Act of 1961, as amended, and the Arms Export Control Act of 1976, as amended, or other relate

What is the relationship between security attacks and security services and security mechanisms in network security?

Security attack--any action that compromises the security of information (In simple terms, attempted to cause damage) Security Mechanism-- It is a mechanism that is designed

What is the relationship between flow rate pressure?

With the increase in flow rate the velocity of the fluid increases. and with the increase in velocity the pressure decreases, because there will be pressure drop (Refer Bernou

What is the relationship between breathing rate and exercise?

In a healthy adult, breathing rate and the amount of exercise should be directly proportional, with exercise as the independent variable. That means, the more exercise you do

Distinguish between deep discount bond and zero coupon bond?

the main difference between deep discount bond and zero coupon bond  is that in case of zero coupon bond no int is payable periodically  while in case of deep discount bond

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 first

What is the relationship between pulse rate and fitness?

  Pulse rate refers to the number of times your heart beats per minute to pump blood in your body. Someone who is fit should have a stronger and more efficient heart so fe

The relationship between shear rate and viscosity?

Shear rate and viscosity are related to each other. According to shear rate and viscosity we can classifying the materials especially paints. Fluids are divided into two types