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James has purchased a 10-year bond that pays a 50 coupon If interest rates go up what happens?
Wiki User
∙ 12y ago
the bond PRICE will go DOWN
Wiki User
∙ 12y ago
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What is the interest rate the bond issuer pays to the bondholder called?
The interest rate paid on a bond is known as the coupon rate. A $1,000 fixed rate bond with a 5% coupon rate purchased at par would yield $50 annually in interest payments.
When market interest rates exceed a bond's coupon rate the bond will?
When market interest rates exceed a bond's coupon rate, the bond will:
What is a zero coupon?
A zero coupon is, in a financial sense, a security which does not pay interest periodically.
What is the difference between the coupon rate and the interest rate?
Coupon rate is something that is paid semiannually. The interest rate is something that starts as soon as a bond is issued.
What is a zero-coupon note?
A zero-coupon note is a note which pays at maturity the value of the note with no separate interest payments.
What is the interest rate the bond issuer pays to the bondholder called?
The interest rate paid on a bond is known as the coupon rate. A $1,000 fixed rate bond with a 5% coupon rate purchased at par would yield $50 annually in interest payments.
James has purchased a 10-year bond that pays a 50 coupon. If interest rates go up .?
the bond PRICE will go DOWN
How is accrued interest calculated?
Accrued interest is usually calculated like this: Accrued interest = face value of the bonds x coupon rate x factor. Coupon = Annual interest rate/Number of payments. Factor = time coupon is held after last payment/time between coupon payments.
When market interest rates exceed a bond's coupon rate the bond will?
When market interest rates exceed a bond's coupon rate, the bond will:
What is a zero coupon?
A zero coupon is, in a financial sense, a security which does not pay interest periodically.
Can you give me a sentence with the word coupon in it?
Not all bonds pay out interest through coupon payments.
What is the difference between the coupon rate and the interest rate?
Coupon rate is something that is paid semiannually. The interest rate is something that starts as soon as a bond is issued.
What is a contractual interest rate on bond referred as?
The "Coupon"
Why is it illegal to resell groceries purchased with a coupon?
I don't think its illegal to resale unless the coupon states that you can't resale it
How can you avoid accrued interest on a corporate bond?
Buy the bond just after the coupon has been paid (or goes "ex coupon").
What is a zero-coupon note?
A zero-coupon note is a note which pays at maturity the value of the note with no separate interest payments.
How can you estimate interest rate risk?
Interest rate risk is measured by time to maturity and coupon rate
