This is the interest rate that every debenture /bond carries on its face value and is fixed at the time of issue

Related MCQs

• The annual coupon of a bond divided by its face value is called the bond:
• The value of a bond and debenture is
• If coupon rate is equal to going rate of interest then bond will be sold
• A bond that makes no coupon payments (and thus is initially priced at a deep discount to par value) is called a_______ bond.
• These are instruments, which give a fixed rate of interest for a fixed period of maturity.
• These are instruments, which give a fixed rate of interest for a fixed period of maturity.
• “The yield curve will be downward sloping if the market believes that future short-term interest rates will be less than current short-term interest rate.” This statement about the term structure of interest rates is most consistent with the:
• Lara wants to buy a bond and hold it until it matures. Which of the following must occur if Lara is to realize a holding period return equal to the bond’s yield to maturity?
• Value of a bond just depends on the interest payment is offers.
• Required rate of return>Coupon rate, the bond will be valued at