BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -A coupon payment on a bond is a periodic interest payment that the bond holder receives during the time between when the bond is issued and when it matures.

Detailed explanation-2: -Bondholders Earn Income First, most bonds return regular interest-coupon rate-payments that are usually paid semi-annually. However, depending on the structure of the bond it may pay yearly, quarterly, or even monthly coupons.

Detailed explanation-3: -The dollar amount of interest paid to an investor. The amount is calculated by multiplying the interest of the bond by its face value.

Detailed explanation-4: -The coupon rate is calculated on the bond’s face value (or par value), not on the issue price or market value. For example, if you have a 10-year-Rs 2, 000 bond with a coupon rate of 10 per cent, you will get Rs 200 every year for 10 years, no matter what happens to the bond price in the market.

Detailed explanation-5: -The coupon rate of a bond is its interest rate, or the amount of money it pays the bondholder each year, expressed as a percentage of its par value. A bond with a $1, 000 par value and coupon rate of 5% pays $50 in interest each year until maturity.