…face value is the amount of money per bond that the institution pays you back when the bond matures. The second component is the Coupon. The coupon is the interest,…
…called a Premium Bond. When you buy a bond and pay less than the face value for it, the bond is called a Discount Bond. Coupon / Interest Rate The…
What is a Coupon? When you buy a bond, you are loaning money to the Issuer, and the coupon is what the Issuer pays you for loaning it money. The…
…bonds, the risk-free rate is the coupon paid to investors. US Treasury Bonds are tax-exempt at the state level, which means when you receive your coupon payment, you don’t have…
…a 6% coupon. In 10 years, you will have received a total of $500 in coupon payments from the NYC muni bond, and a total of $600 in coupon payments…
…reward too. This is because the riskier the Issuer, the higher the interest rate, or coupon, will be on the bond. Corporate bonds are taxable at both the state and…