# Difference between coupon rate and yield to maturity?

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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 bought in the secondary market. For example, if you buy a \$1,000 bond for \$1100 which matures in 10 years and has a coupon of 5%, your coupon is 5%, but your yield to maturity would be closer to 4% because you paid \$1100, but will only get back \$1,000 at maturity (losing \$100). The "loss" reduces the return.
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# What is the difference between rate and yield?

Answer . Rate is the specified interest rate paid on a financial instrument (such as a bond). The interest is calculated by applying the rate to the face value of the instr

# 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 face Value if maturity is 7 years Coupons are paid annually at rate of 5 and Yield to maturity is 7?

You're missing one of the following: . Coupon value . Bond present/purchasing value . As it stands, there's insufficient information.

# What is the yield to maturity for a bond that has 10 years until maturity and a coupon rate of 8 sells for 1100?

YTM= 6.602%. ------------------------------------------------------------------------------------. I got a different answer, I got YTM 6.67% . 80 - 10 (80 coupon -100 cap

# If a bond with face value of 1100 and a coupon rate of 8 is selling at a price of 970 is the bond's yield to maturity more or less than 8 and what is the current yield?

When a bond sells at a discount, the yield is higher than the coupon rate. Your income is 1,100 x 8% = 88. You invested 970. 88/970 = 9.07% yield.

# A 6-year Circular File bond pays interest of 80 annually and sells for 950 What are its coupon rate current yield and yield to maturity?

Bond Pricing. A 6 year circular file bond pays interest of \$80 annually, and sells for \$950.. What are its coupon rate, Current yield, and yield maturity?

# What is the difference between IRR and yield to maturity?

IRR (Internal Rate of Return) is a metric used in corporate finance to assess the relative value of projects. YTM (Yield to Maturity) is a metric used in bond analysis to dete

# If two bonds have the same maturity the same yield to maturity and the same level of risk the bonds should they sell for the same price regardless of the bond's coupon rate?

if two bonds offer the same duration and yield, then an investor should look at their levels of convexity. if one bond has greater convexity, it is less affected by interest r

# If a bond's yield to maturity exceeds its coupon rate does the bond's current yield must also exceed its coupon rate?

No......The price of the bonds will be less than par or 1,000.....

# 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

# What is the difference between yield to maturity and yield to call?

Yield to maturity means the interest rate for which the present value of the bond's payments equals the price. It's considered as the bond's internal rate of return. Yield to.
In Economics

# How does the yield to maturity on a bond differ from the coupon yield or current yield?

The rate of return anticipated on a bond if held until the end ofits lifetime. YTM is considered a long-term bond yield expressed asan annual rate. The YTM calculation takes i
In Economics

# If a coupon bond is selling at par does the current yield equal its yield to maturity?

Yield usually refers to yield to maturity. If a bond is trading at par it usually means the yield to maturity is equal to the coupon.
In Economics

9.28
In Coupons

# When does coupon rate exceed coupon yield?

There are a lot of sites that provides coupon codes on onlineshopping or ordering food. I'm using CouponLocate.com that offersamazing coupons and cashback as well on your shop
In Bonds and Treasuries

# What happen when the yield to maturity on a bond is greater than the coupon rate?

When the yield of a bond exceeds it coupon rate, the price will be below 'par' which is usually \$100.