Definition
A bond with a coupon rate above, at or just slightly below current market interest rates. The bond is thus selling at around its par value (provided that the applicable required rate of return is almost the same as the coupon rate). If the market interest rate rises, and the bond's coupon rate is fixed, then the bond's price will decline. If the market interest rate falls and the bond's coupon rate stays fixed, then the bond's price will rise.
This content can be found on the following page:
http://www.investorwords.com/cgi-bin/getword.cgi?id=2107&term=full%20coupon%20bond
email to a friend
print this definition
cite this definition
link to this page
Copy and paste this HTML in your website to link to this page
Related Research Articles from the InvestorGuide.com University
Advanced Bond Concepts
Learn about callable and non-callable bonds, zero-coupon bonds, secured and unsecured bonds, tax-deferred bonds, put provisions, and other advanced bond concepts.
Introduction to Bonds
This asset class plays an important role in most investors' portfolios, and the basic concepts are important for every investor to know. Here we explain how bonds work, and we describe the different types of bonds, including corporate, municipal, treasury, agency, zero-coupon, and junk bonds.
Other Types of Bonds
Find out about bonds issued by mortgage associations, savings bonds, Brady bonds, as well as those issued by other government agencies, and what the advantages and disadvantages of each type are.
|
