The coupon rate (also called nominal yield) is the annual coupon payments paid by the bond issuer relative to the bond’s face or par value. The formula to calculate the coupon rate of a bond is ...
The coupon equivalent rate is a calculation of the effective yield on a zero-coupon bond. The effective yield is the annual rate of return attached with a period of interest rate, while a zero ...
The holding period return (or yield) formula may be used to calculate and compare the ... Assume you purchased a 10-year, $5,000 bond with a 5% coupon rate. You purchased the bond five years ...
This bond has an annual coupon rate (the yield paid through maturity) of 5%. Let’s also assume that the current interest rate is 7%. To calculate the modified duration for this bond, we first ...