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What Is a Bond Coupon, and How Is It Calculated? - Investopedia
For example, a $1,000 bond with a coupon of 7% pays $70 a year. Typically these interest pay…Because bonds can be traded before they mature, causing their market value to fluctuate, the current yield (often referred to simply as the yield) will usually diverge from the bond's coupon or nominal yield. For example, at issue, the $1,000 bond described above yields 7%; that is, its cur…
The current yield is used to calculate other metrics, such as the yield to maturity and the yield t…A coupon payment refers to the annual interest paid on a bond between its issue date and the date of maturity.
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