Coupon rates are fixed are paid every six months until the duration of the bond
While
Interest rates or yield to maturity ( YTM ) can change accordingly. If interest rate ( YTM ) is higher than the coupon rate you pay less than the actual bond face value, in other words you get it at a discount, you are paid that difference for the whole bond duration in advance and if the coupon rate is higher than YTM you get it at premium, you pay more than the actual face value because you will be paid more in coupons than the actual interest rate.
I'm Mr Kintu willaims, I would like to invest in the bonds but the challenging is on counting the percentage of return of the investment in the bonds. If there's away you can teach us on this I will appreciate it Sir. Thanks
Hullo Alex
Your relentless efforts to educate the public about investment in securities is impressive.
Good afternoon Sir,
Please throw more light on interest rates and copoun rates their differences and application
Coupon rates are fixed are paid every six months until the duration of the bond
While
Interest rates or yield to maturity ( YTM ) can change accordingly. If interest rate ( YTM ) is higher than the coupon rate you pay less than the actual bond face value, in other words you get it at a discount, you are paid that difference for the whole bond duration in advance and if the coupon rate is higher than YTM you get it at premium, you pay more than the actual face value because you will be paid more in coupons than the actual interest rate.
Good afternoon Sir.
I'm Mr Kintu willaims, I would like to invest in the bonds but the challenging is on counting the percentage of return of the investment in the bonds. If there's away you can teach us on this I will appreciate it Sir. Thanks
Regards
Thank you Alex for sharing!
Thank you for this