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in general, a corporate bond's coupon rate , multiple choice question. is fixed until the bond matures decreases as a bond nears maturity changes in sync with market interest rates changes every year

Sagot :

The correct answer is a corporate bond's coupon rate is fixed until the bond matures.

A corporate bond's coupon rate is fixed until the bond matures. The coupon rate is the annual interest rate paid to the bondholder and is determined when the bond is issued. It stays fixed until the bond matures, at which point the investor receives the face value of the bond. The coupon rate does not change in sync with market interest rates.

When a bond matures, it means that the bond issuer has fulfilled its obligation to repay the principal amount of the bond to the bondholder on the maturity date.

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