A fall in
interest rates results in a fall in the coupon rates of bonds that are issued after the fall in
interest. The coupon rate of a bond is an amount that the issuer is willing to pay the buyers of
the bond for lending their money....
Monday, October 20, 2008
How does a fall in interest rates impact coupon rate, coupon yield, and yield to maturity for a bond that was issued at par value?
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