Login to manage your account

Please enter a valid email address.
Forgot Password?
Please enter a valid password.
OR

Don't have an account yet? Sign up

Which of the following best describes a bond's coupon rate?

  1. A The annual interest paid as a percentage of face value
  2. B The bond's current market yield
  3. C The total return if held to maturity
  4. D The credit rating of the issuer
Answer

The annual interest paid as a percentage of face value

The coupon is fixed at issue and paid on the face value. Current yield and yield to maturity both vary with the market price.

All Finance MCQs

Login to manage your account

Please enter a valid email address.
Forgot Password?
Please enter a valid password.
OR

Don't have an account yet? Sign up as