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Management · Q614

Financial Management

Graduate and Post Graduate · Management · question 614

Q614

Coupon payment is calculated with help of interest rate, then this rate considers as

A.
payment interest
B.
par interest
C.
coupon interest
Answer
D.
yearly interest rate

Answer: Option C

Solution

Answer: Option C
Solution:
Coupon payment is calculated with help of interest rate, then this rate considers as coupon interest. A coupon rate is the yield paid by a fixed-income security; a fixed-income security's coupon rate is simply just the annual coupon payments paid by the issuer relative to the bond's face or par value.