Question

which of the following terms refers to the periodic payments a bond issuer has to pay:...

which of the following terms refers to the periodic payments a bond issuer has to pay:

a. a coupon

b. yield to maturity

c. dirty yield

d. call yield

e. discount rate

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Answer #1

Bonds can be issued at par, premium or discount but there are fixed coupon rate of bonds.

Coupon rate is a interest rate which is always payable on par value of bonds and it will be paid on periodically basis and it may be monthly, quarterly, half yearly or yearly.

So it means correct answer of the option is Coupon

Answer = Option A = a Coupon

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