Ask Question
24 February, 17:09

The coupon rate is the rate of interest that the issuer of the bond must pay. (II) The coupon rate is usually fixed for the duration of the bond and does not fluctuate with market interest rates.

+5
Answers (1)
  1. 24 February, 18:02
    0
    TRUE

    Explanation:

    The coupon rate for a bond is fixed and is paid by the issuer of the bond to the bondholder. The cash outlay/inflow to the issuer/bondholder is always the same reardless of the market rate.

    The effect of the market rate is on the cost to acquire the bond in the secondary market. It do not change the coupon obligation.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The coupon rate is the rate of interest that the issuer of the bond must pay. (II) The coupon rate is usually fixed for the duration of the ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers