Investopedia.com

Coupon Rate Definition

The coupon rate, or coupon payment, is the nominal yield the bond is stated to pay on its issue date. This yield changes as the value of the bond changes, thus giving the bond's yield to maturity

Actived: 2 days ago

URL: https://www.investopedia.com/terms/c/coupon-rate.asp

Current Coupon Definition

Current Coupon: The to-be-announced (TBA) mortgage security of any issue for the current delivery month that is trading closest to, but not exceeding par value. TBA mortgage securities with the

Category:  Trading Go Coupon

Discount Definition

Discount: In finance, discount refers to the condition of the price of a bond that is lower than par, or face value. The discount equals the difference between the price paid for a security and

Category:  coupon codes Go Coupon

Promotion Expense Definition

A promotion expense is a cost companies incur to market their products or services to consumers. Promotion expenses range from giveaways, …

Category:  coupon codes Go Coupon

Can a corporation deduct dividend payments before its

Dividends and Unit Trust Taxation. Corporations may not legally deduct the dividend payments before taxes but there is another approach: a corporate structure called an income trust. Income trusts

Category:  coupon codes Go Coupon

Step-Up Bond Definition

A step-up bond is a bond that pays a lower initial interest rate but includes a feature that allows for rate increases at periodic intervals. The number and extent of rate increases–as well as

Category:  coupon codes Go Coupon

Strip Bonds Definition

Strip Bond: A strip bond is a bond where both the principal and regular coupon payments--which have been removed--are sold separately. Also known as a "zero-coupon bond."

Category:  coupon codes Go Coupon

Discount Margin—DM Definition

Discount Margin - DM: A discount margin (DM) is the average expected return earned in addition to the index underlying , or reference rate, of the floating rate security. The size of the discount

Category:  coupon codes Go Coupon

Buying a $1,000 Bond With a Coupon of 10%

These bonds typically pay out a semi-annual coupon. Owning a 10% ten-year bond with a face value of $1,000 would yield an additional $1,000 in …

Category:  coupon codes Go Coupon

Scrip Definition

Gift cards, reward points, and coupons are popular examples of scrips. Understanding Scrips In a broad sense, the term scrip refers to any type of substitutional currency that replaces legal tender .

Category:  coupon codes Go Coupon

The Basics of Municipal Bonds

The most basic strategy for investing in municipal bonds is to purchase a bond with an attractive interest rate, or yield, and hold the bond until it matures. The next level of sophistication

Category:  coupon codes Go Coupon

Original Issue Discount – OID Definition

An original issue discount (OID) is the discount in price from a bond's face value at the time a bond or other debt instrument is first issued. Bonds can be issued at a price lower than their face

Category:  coupon codes Go Coupon

Discount Bond Definition

Since bonds are a type of debt security, bondholders or investors receive interest from the bond's issuer. This interest is called a coupon that is usually paid semiannually but, depending on the

Category:  coupon codes Go Coupon

Quantity Discount Definition

So, if the per-unit cost for the coat company is $10, the company makes a $10 profit on every single $20 sale. However, if the company offers quantity discounts of $2 per coat for orders of …

Category:  coupon codes Go Coupon

3 signs that it's time to sell your bonds

Expand. 1. Interest Rates Set to Rise. 2. The Issuer Seems Unstable. 3. The Market Price Is High. Investing can be tricky, even when it comes to …

Category:  coupon codes Go Coupon

Paydown Definition

Paydown occurs when the amount a company or government repays in debt exceeds the amount it currently borrows. A paydown takes place when a …

Category:  coupon codes Go Coupon

Yield to Maturity vs. Coupon Rate: What's the Difference

The yield to maturity (YTM) is the percentage rate of return for a bond assuming that the investor holds the asset until its maturity date. It is the sum of all of its remaining coupon payments. A

Category:  coupon codes Go Coupon

Understanding Treasury Bonds vs. Treasury Notes vs

Note Auction: A formal bidding process that is scheduled on a regular basis by the U.S. Treasury. Currently there are 17 authorized securities dealers (primary dealers) that are obligated to bid

Category:  coupon codes Go Coupon

Accounts Receivable (AR) Discounted Definition

Accounts Receivable (A/R) Discounted: Outstanding invoices representing money owed to a creditor which the firm/creditor sells to a buyer for less than face value , typically to quickly raise

Category:  Credit Go Coupon

8 Bank Promotions That Pay You to Open an Account

The Costs Behind the Rewards . Banks and other financial institutions earn money from many sources. One such source is the revenue they receive …

Category:  coupon codes Go Coupon

How to Calculate Net Present Value (NPV) & Formula

Assume there is no salvage value at the end of the project and the required rate of return is 8%. The NPV of the project is calculated as follows: N P V = $ 5 0 0 ( 1 + 0. 0 8) 1 + $ 3 0 0 ( 1 + 0

Category:  coupon codes Go Coupon

Debt Tender Offer Definition

A debt tender offer is a public solicitation to a company's bondholders requesting that they sell back their bonds or debt securities at a specific price and during a certain timeframe. Companies

Category:  coupon codes Go Coupon

Advantages and Risks of Zero Coupon Treasury Bonds

Zero-coupon U.S. Treasury bonds have a poor risk-return profile when held alone. Long-dated zero-coupon Treasury bonds are more volatile than …

Category:  coupon codes Go Coupon

How Bond Market Pricing Works

For example, one of the most commonly used benchmark curves is the on-the-run U.S. Treasury curve, which is constructed using the most recently issued U.S. Treasury bonds, notes, and bills

Category:  coupon codes Go Coupon

How Inflation Impacts Your Savings

However, that increase requires approval by Congress. A rise of 1.6% was approved for 2020, the same amount as the 2019 increase. The increase was 2.8% in 2018, and it was 2% for 2017.

Category:  coupon codes Go Coupon

What Is Accrued Interest, and Why Do I Have to Pay It When

Accrued interest is the amount of interest earned on a debt, such as a bond, but not yet collected. Interest accumulates from the date a loan is issued or when a bond's coupon is made, but coupon

Category:  coupon codes Go Coupon

Duration and Convexity to Measure Bond Risk

The duration of a zero-coupon bond equals time to maturity.; Holding maturity constant, a bond's duration is lower when the coupon rate is higher, because of the impact of early higher coupon

Category:  coupon codes Go Coupon

Here’s how the Firestone credit card works, including

The Bottom Line. As a store card, the Firestone credit card offers cardholders a convenient way to pay for car repairs, maintenance, tires, and other purchases at their many locations in the U.S

Category:  Credit Go Coupon

The Dangers of Taking Out a Direct PLUS Loan

Danger 4: They're Impossible to Get Out of, Even in Bankruptcy. There is no escaping a Direct PLUS Loan, so not making payments and letting a …

Category:  coupon codes Go Coupon

Related topics