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Why do the coupon rates for various bonds vary so much?
Coupon rates are likely to vary when they are being traded in different markets with different interest rates. There will also be a variation in rates due to the different risk levels of of different bonds.
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according to the come rates the returns we get if we purchase higher rated coupon bonds we get higher returns
Temperatures vary so greatly because there is no atmosphere, because Mercury's surface gravity is so weak, gasses can easily escape into space. Because it has no atmosphere,… heat energy from hot locales cannot be moved to colder locales. Therefore, the side facing the sun will be very hot (to the touch) and very cold on the side away from the sun. In addition, because Mercury does not have an atmosphere to contain the heat or cold, the temperatures on Mercury fluctuate severely during the night and day.
We have a maritime climate. Where the warm wet air from the tropics meets up with the cold dry air from the poles, you get a series of frontal systems that cross the Atlantic …from South West to North East. Ireland gets the brunt of it, but these affect the whole of the UK. That's why the weather's always changing and why our countryside is always green.
i guess debenture, since its more riskier!
emperatures vary so greatly because there is no atmosphere, because the moon's surface gravity is so weak that gasses can easily escape into space. Because it has no atmosphe…re, heat energy from hot locales cannot be moved to colder locales. Therefore, the side facing the sun will be very hot (to the touch) and very cold on the side away from the sun. In addition, because the moon does not have an atmosphere to contain the heat or cold, the temperatures on the moon fluctuate severely during the night and day.
Zero Coupon Municipal Bonds are special because, unlike other bonds, they have no periodic interest payments. Rather, the investor receives one payment at maturity. This payme…nt is equal to the amount invested, plus the interest earned, compounded semiannually.
Most bonds have two parts: the coupons and the corpus. The corpus represents the principal; the coupons the interest. Coupons have redemption dates printed on them; you turn i…n your coupon to receive the interest payment.
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… interest rates, then yields and finally you can surmise that relationship between yield rates will be the same as coupon rates Duration can be seen as the elasticity of the bond's price with respect to interest rates. When duration is 7, a 15 year bond will fall 7% in value if interest rates increase by 1%. In the data we've generated we can also determine the relationship between yields and duration by analyzing the change after a 50 basis point decrease in rates. The duration will rise as yields are lowered, and conversely a high coupon rate or high yield will result in lower durations. While a higher yield reduces the present value of all the bond's payments, it reduces the value of payments further in the future by a greater proportional amount. This amounts to a reduction in duration. Merck & Company's bond has the highest yield and therefore one would surmise that the duration for MRK should be lower than the other bonds, this is only true if all other variables are held equal (ceteris paribus). This is not the case. The bonds have wildly different coupons remaining. Eli Lilly's bond has a similar number of coupons remaining-suggesting a relatively good candidate for comparison-and a lower yield than MRK, leading one to expect LLY bond to have a higher duration than MRK. An astute financial student would discourage this comparison, citing that LLY exhibits the highest (7.125%) annual coupon rate, which would in turn reduce the duration. While comparisons between bonds will fail us due to their unique characteristics, it is easy to see the change when examining a single bond and the effect of a 50 basis point decrease in rates has on the bond's duration. Every single bond's duration rose, relative to itself before the basis change, as their yields were lowered. This helps prove our assumption of the inverse relationship between yield and duration.
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… is the face value (also called par value). This is the value of the bond as given on the certificate or instrument. This is the value the bond holder will receive at maturity unless the issuer defaults. If bonds are retired before maturity, bond holders may receive a slight premium over face value. Investors pay par when they buy the bond at its original face value. The price investors pay may be more or less than the face value. Bonds also have a coupon rate. This is the annual rate of interest payable on the bond. For the owner of a bond, the higher the coupon rate, the higher the interest payments the owner receives. The rate is set at the time the bond is issued and generally does not change. Most bonds make interest payments semiannually, although some bonds are offered with monthly and quarterly payments. Did you know? Until 1983, all bond owners received an actual paper bond certificate. This inspired bond terminology. The loan amount appeared prominently on the face of the bond. Bonds included coupons that the owner detached, one Price and interest rate on a bond are inversely related, if the bond price is low, rate will be high, if the bond price is high, interest rate will be lower.
Because there is no atmosphere the greenhouse effect does not take place. All of the suns rays are reaching the moon with full power.
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 i…nvesting in a bond
Because it's so big. It's not just wide but also long too so it covers many latitudes. Because of the angle of the sun different latitudes get more or less sun than ot…hers and are hotter or colder than others. Because Australia is long and covers many latitudes it has many temperature differences. Then there is terrain. Australia is one big island (well the mainland anyway) so we have coastal weather, rain, wind and the like. But we also have a huge mountain range running down the edge of the east coast of Australia which catches a lot of the rain clouds so that they can't get inland. Therefore a lot of inland Australia is desert and with no rain to help grass and plants grow and no cloud cover to hold in the daytime heat the desert is scorching during the day and freezing at night (like most deserts). We also have high mountains which mean they get snow or at least very cold when low lying areas are not so cold just because of their altitude. And I'm sure a meteorologist could explain it even better then me.
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 indicate…s 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.
because the earth line is always near deserts that's ends it