A coupon bearing bond is a bond with a flat yield curve. This is a non interest bearing bond. There really would be no sense in purchasing a bond that does not gather any interest.
A long coupon bond is 8.5 x 14.
A short coupon bond is 8.5 x 11.
Coupon rate
1)bond issue 2)coupon payment 3)bond maturity
Buy the bond just after the coupon has been paid (or goes "ex coupon").
A long coupon bond is 8.5 x 14.
A short coupon bond is 8.5 x 11.
When market interest rates exceed a bond's coupon rate, the bond will:
The zero coupon bond is more sensitive to change in rate (inflation) because the market value is not based on a fixed coupon.
If the coupon you have is a manufacturer's coupon then yes you can. The coupon you get from the manufacturer has no bearing on the deal in the store.
Coupon rate
1)bond issue 2)coupon payment 3)bond maturity
Buy the bond just after the coupon has been paid (or goes "ex coupon").
depends on the collateral supporting the bond.
No, the yield to maturity (YTM) on a premium bond does not exceed the bond's coupon rate. A premium bond is sold for more than its face value, which means the YTM will be lower than the coupon rate because the investor will receive the fixed coupon payments but will incur a loss when the bond matures and is redeemed at face value. Thus, the YTM reflects this lower return compared to the coupon rate.
The coupon rate of a bond can be determined by dividing the annual interest payment by the bond's face value, and then expressing it as a percentage.
To find the coupon rate of a bond, divide the annual interest payment by the bond's face value and then multiply by 100 to get the percentage rate.