Coupon Payments
The periodic interest payments on a bond.
Coupon Rate
The annual value of a bond's coupon payments, expressed as a percentage of the bond's par value.
Coupon payments
A bond's interest payments.
Coupon rate
In bonds, notes, or other fixed income securities, the stated percentage rate of interest, usually paid twice a year.
Coupon payments
A bond's interest payments.
Current coupon
A bond selling at or close to par, that is, a bond with a coupon close to the yields currently offered on new bonds of a similar maturity and credit risk.
Coupon payments on a security as a percentage of the security's market price. In many instances the price should be gross of accrued interest, particularly on instruments where no coupon is left to be paid until maturity.
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Annual coupon payments divided by bond price.
eurodollars
dollars held on deposit in a bank outside the United States.
To receive coupon payments, the bondholder must clip the coupons attached to the bond and submit them for payment. This contrasts with book-entry, where ownership information is noted in a computer database and there are no physical bond certificates.
In the case of coupon payments from bonds, the party receiving the coupons is the payee, whereas the bond issuer would be referred to as the payer.
Yield assuming that coupon payments are invested at the going market interest rate at the time of their receipt and held thus until the bond matures.
Realized return
The return that is actually earned over a given time period.
Payment-in-kind (PIK) bond A bond that gives the issuer an option (during an initial period) either to make coupon payments in cash or in the form of additional bonds.
Realized compound yield Yield assuming that coupon payments are invested at the going market interest rate at the time of their receipt and held thus until the bond matures.
Make whole provision Related to the lump-sum payments made when a loan or bond is called, equal to the NPV of future loan or coupon payments not paid because of the call. The payment can be significant and negate the attractiveness of a call.
(If a bondholder receives $40 in coupon payments per bond semi-annually and sells the bond one quarter of the way into the coupon period, the buyer pays the seller $10 as the latter's proportion of interest earned.) Accumulated Benefit Obligation (A.
Level-coupon bond Bond with a stream of coupon payments that remain the same throughout the life of the bond.
Salomon Smith Barney Inflation-Linked Security Index (ILSI)SM This index measures the return of debentures with fixed-rate coupon payments that adjust for inflation as measured by the Consumer Price Index (CPI).
Semi-annual coupon payments are equal the coupon divided by two and then multiplied by the par value of the bond (i.e. face value or principal, not the market value).
Duration represents the average life of the coupon payments and redemption of a bond and links changes in interest rates to the volatility of a bond's value. One year later, J.R.
The Cash Flow is the return associated to the investment on financial assets corresponded in different forms according to the type of financial asset as dividends and options of stocks or coupon payments on bonds.
For example, the interest earned by a bondholder between semiannual coupon payments or the interest earned by a lender since the last monthly interest payment was collected from the borrower.
These are unsecured bonds that require the issuer to make scheduled coupon payments only if it has the income to do so. Failure to pay coupons cannot drive the issuer into bankruptcy. Missed coupons may accumulate or they may not.
A type of bond that offers investors the option to re-invest coupon payments back into additional bonds with the same coupon and maturity. Also known as "multiplier bond" or "guaranteed coupon reinvestment bond." ...
INDEX-LINKED BOND - provides a secure investment in real terms, as the coupon payments and the redempti...
INDEX-TRACKING UNIT TRUST - The only type of unit trust that makes sense to us. While most unit trusts ...
Zero Coupon Bond A bond that has no coupon payments. It pays only a single cash flow at maturity. May be taxable outside a qualified retirement vehicle.
Yield to Maturity (YTM)
A rate of return measuring the total performance of a bond (coupon payments as well as capital gain or loss) from the time of purchase until maturity.
See the main article for the formula and more information.
The coupon rate is the nominal interest rate (the annual coupon divided by the face value). Coupon payments on certain securities (usually government bonds) may be separated from the bond to create strips.
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Zero coupon bond
A bond issued at a discount, for which investors will not receive coupon payments for the life of the bond. Interest grows over the life of the bond such that at maturity, the bond is redeemed at par.
Annual Interest Expense Coupon Payments = 9% x 1,000,000 = $90,000
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With Debt ...
They used analogous approach in estimation of internal rate of return on a bond using market value and coupon payments.
After 12 years you would have received £120 in coupon payments, and be awaiting a further £130 (£30 in coupons and the repayment of the £100 face value), therefore with these values being almost equal, ...
Bond with a stream of coupon payments that remain the same throughout the life of the bond.
Level debt service ...
The contract outlines the terms and conditions - the coupon rate, timing of coupon payments, maturity date and any other terms. The bond contract is usually administered by a trust company on behalf of all the bondholders.
A bond that gives the issuer an option (during an initial period) either to make coupon payments in cash or to give the bondholder a similar bond.
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coupon strip: A bond can be resold into two parts that can be thought of as components: (1) a principal component that is the right to receive the principal at the end date, and (2) the right to receive the coupon payments.
Bonds in which the coupon is linked to a retail or consumer price index. As the index changes so do the coupon payments. Almost all index-linked bonds are government bonds. They are known colloquially as linkers.
Level-coupon bond
Definition: [crh] Bond with a stream of coupon payments that remain the same throughout the life of the bond.
REINVESTMENT RISK " The risk that an investor in bonds who chooses to spend the interest, or is unable to reinvest the coupon payments, will not receive the calculated yield to maturity.
Municipal Inflation-Linked Securities
Investment vehicles issued by various levels of governments containing variable coupon payments that increase and decrease with changes in the consumer price index (CPI).
Generally, the calculation is a function of coupon payments, dirty price, and the method for discounting coupons and the redemption value. However, the exact functional form is determined by market or dealer conventions.
A yield based on the assumption that the security remains outstanding to maturity. It represents the total of coupon payments until maturity, plus interest on interest, and whatever gain or loss is realized from the security at maturity.
Time periods are weighted by multiplying by the present value of its cash flow divided by the bond's price. (A bond's cash flows consist of coupon payments and repayment of capital.) ...
This statistic adjusts the Macaulay Duration by taking into account the yield in the market and the frequency of coupon payments in a year. Modified Duration is less than the standard duration. It is computed as: ...
A security which is identical to a treasury bond except that principal and coupon payments are adjusted to eliminate the effects of inflation.
Top-down equity management style ...
For instance, by using an interest rate swap, floating rate interest payments can be created and linked to coupon payments under a fixed interest rate bond.
(If a bondholder receives $40 in coupon payments per bond semi-annually and sells the bond one quarter of the way into the coupon period, the buyer pays the seller $10 as the latters proportion of interest earned.) ...
(If a bondholder receives $40 in coupon payments per bond semiannually and sells the bond one-quarter of the way into the coupon period, the buyer pays the seller $10 as the latter's proportion of interest earned.) ...
Bond investors usually expect more of their gains to come from coupon payments. They also worry that INFLATION will erode the REAL VALUE of future coupons, making them value current payments more highly than those due in years to come.
(If a bondholder receives $40 in coupon payments per bond semiannually and sells the bond one-quarter of the way into the coupon period, the buyer pays the seller $10 as the latter's proportion of interest earned.) ...
(If a bondholder receives $40 in coupon payments per bond semiannually and sells the bond one-quarter of the way into the coupon period, the buyer pays the seller $10 as the latter's proportion of interest earned.) ...
(If a bondholder receives $40 in coupon payments per bond semiannually and sells the bond one-quarter of the way into the coupon period, the buyer pays the seller $10 as the latter's proportion of interest earned.) ...
Treasury Inflation Protected Securities (TIPS): Treasury bonds with the added advantages of having its par value adjusted every six months for inflation based on the CPI and having coupon payments calculated using the bond's revised value.
In general, duration rises with maturity, falls with the frequency of coupon payments, ...
consist of those non-equity assets (e.g., bonds) where earnings are derived from interest that is a fixed percentage of the asset's par, stated, or face value. These may include investments purchased at a discount that do not have coupon payments.
For instance, individuals may take stock dividends and purchase more shares of the same stock, or they may opt for coupon payments in order to buy more of that bond issue. A process of reinvesting comes into play.
 See also: Banks, Expense, Funding, Refunding, Values
  
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