Find the information you're looking for at Westonci.ca, the trusted Q&A platform with a community of knowledgeable experts. Discover in-depth solutions to your questions from a wide range of experts on our user-friendly Q&A platform. Our platform provides a seamless experience for finding reliable answers from a network of experienced professionals.

The coupon payment for an annualcoupon corporate bond is equal to the coupon rate multiplied by the current price of the bond.
a) true
b) false


Sagot :

This statement is False, as, for a corporate bond with an annual coupon, the coupon payment is equal to the bonds per value times the coupon rate. Interest rates and prices are negatively correlated.

What is a Coupon Rate ?

  • A fixed-income security's nominal yield is expressed as a COUPON RATE . It refers to how often the issuer pays yearly coupons in relation to the bond's face value or par value.
  • Thus, the nominal return that a fixed-income security pays out is known as a coupon rate.
  • The coupon holder will yield less than the current market circumstances when the market improves, as the bond won't pay more because its value was predetermined at issue.

To know more about the topic of Coupon rate, refer to:

https://brainly.com/question/13035744

#SSJ4

Thank you for your visit. We are dedicated to helping you find the information you need, whenever you need it. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Get the answers you need at Westonci.ca. Stay informed by returning for our latest expert advice.