When a new bond is issued, the interest rate it pays is called the coupon rate, which is the fixed annual payment expressed as a percentage of the face value. For example, a 5% coupon bond pays $ ...
Starting with equities, they move to the debt instruments such as bonds, where they know they will receive returns through a coupon rate or value appreciation. However, the investors can seem ...
By Daniel ANKOMAH So, there I was in the office, surrounded by reports and charts, when the phone rang, and it was an old school colleague. After exchanging the usual pleasantries, he threw a question ...
Convexity relates to the interaction between a bond's price and its yield as it experiences changes in interest rates. With coupon bonds, investors rely on a metric known as duration to measure a ...