# Tag: bonds’

# What is coupon rate and coupon payments?

- by Cindy

This is what i understand so far, hope it correct:

Coupon rate: fixed interest rate borrowers must pay to lenders.

Coupon payments: Interest paid by bond issuer to investor.

Also, i want to know who can issue bonds? (Just government?)

What is their advantages of issuing a bond?

And who can lent this money? e.g firms only or can anyone loan it?

Please give me simple explaination as I am new to these terms. Thank you.

# Why is interest rate risk greater for discount bonds than for coupon bonds?

- by Cindy

Assuming the bonds are of the same length.

# What exactly is the coupon rate?

- by Cindy

And what coupon rate is better when it comes to short and long maturities of bonds for instance and why?

# What is the bond's annual coupon interest rate?

- by Cindy

Moussawi Ltd’s outstanding bonds have a ,000 par value, and they mature in 5 years. Their yield to maturity is 9%, based on semiannual compounding, and the current market price is 3.61. The bonds have a par value of ,000. What is the bond’s annual coupon interest rate?

# What is the bond's annual coupon interest rate?

- by Cindy

Moussawi Ltd’s outstanding bonds have a ,000 par value, and they mature in 5 years. Their yield to maturity is 9%, based on semiannual compounding, and the current market price is 3.61. The bonds have a par value of ,000. What is the bond’s annual coupon interest rate?

# What’s the difference between coupon rate and yield to maturity?

- by Cindy

I think those two percents are for bonds, or a bill, i’m not sure

# What is the bond's annual coupon interest rate?

- by Cindy

A company’s outstanding bonds have a ,000 par value, and they mature in 5 years. Their yield to maturity is 9%, based on semiannual compounding, and the current market price is 3.61. The bonds have a par value of ,000. What is the bonds annual coupon interest rate? Any suggestions?

# Why do the coupon rates for the various bonds vary so much?

- by Cindy

Why do the coupon rates for the various bonds vary so much?

# Why do different bonds have different coupon rates?

- by Cindy

If the coupon rates are based on the current interest rates, why don’t all bonds have the same coupon rates? Why are some different?

# How do I figure straight line amortization without a coupon?

- by Cindy

Amortization without coupon!?

On Aug. 1st 2005 a company issues bonds with a par value of 0,000. The bonds mature in ten years and pay %6 interest, payable each Feb. 1st and Aug. 1st. The bonds sold at 2,000. The company uses the straight line method of amortizing bond discounts. The company’s year end is Dec. 31. Prepare the general journal entry to record the interest accrued atr Dec. 31 2005.