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The coupon payment for an annualcoupon corporate bond is equal to the coupon rate multiplied by the current price of the bond.
a) true
b) false

Sagot :

This statement is False, as, for a corporate bond with an annual coupon, the coupon payment is equal to the bonds per value times the coupon rate. Interest rates and prices are negatively correlated.

What is a Coupon Rate ?

  • A fixed-income security's nominal yield is expressed as a COUPON RATE . It refers to how often the issuer pays yearly coupons in relation to the bond's face value or par value.
  • Thus, the nominal return that a fixed-income security pays out is known as a coupon rate.
  • The coupon holder will yield less than the current market circumstances when the market improves, as the bond won't pay more because its value was predetermined at issue.

To know more about the topic of Coupon rate, refer to:

https://brainly.com/question/13035744

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