Looking for right answer to the question you searched for? Make sure to check below for the same:
Revised Finance Questions & Answers
Q. A bond’s coupon rate is equal to the annual interest divided by which one of the following?
- Face Value
- Yield to Maturity
ANSWER: 3. Face Value
Check Recently Added Questions & Answers on Finance
A real rate of return is defined as a rate that has been adjusted for which one of the following?
On which one of the following dates is the principal amount of a semiannual coupon bond repaid?
The sum of the current yield and the rate of capital gain is called the
When you refer to a bond’s coupon, you are referring to which one of the following?
ANSWER IN DETAIL
A bond’s coupon rate is nothing but a bond which is a financial instrument issued by the corporation/government & the investor gets a fixed amount of interest on that bond. It can be calculated by taking the ratio of annual interest dividend to face value of the bond. Therefore, we can say that a bond’s coupon rate is equal to the annual interest divided by face value.
Feel FREE to Bookmark below image->
Hope you find the answer!