ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A fixed rate bond is a bond that pays the same level of interest over its entire term. An investor who wants to earn a guaranteed interest rate for a specified term could purchase a fixed rate bond in the form of a Treasury, corporate bond, municipal bond, or certificate of deposit (CD).

Detailed explanation-2: -Definition: Coupon rate is the rate of interest paid by bond issuers on the bond’s face value. It is the periodic rate of interest paid by bond issuers to its purchasers. The coupon rate is calculated on the bond’s face value (or par value), not on the issue price or market value.

Detailed explanation-3: -Current Interest Rate For savings bonds issued November 1, 2022 to April 30, 2023. You know the fixed rate of interest that you will get for your bond when you buy the bond. The fixed rate never changes.

Detailed explanation-4: -A bond’s face or par value and interest remain fixed for the life of the bond. But if you buy or sell a bond after it’s been issued, its price is subject to market forces and often fluctuates above or below par.