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.
Related information about full coupon bond:
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Definition of full coupon bond: 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 ...
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- Full Coupon Bond: Definition from Answers.com
bond with a coupon rate that is near or above current market interest rates. If interest rates are generally about 8%, for instance, a 7 1 2 % or 9% bond.
- Full Coupon Bond - QFinance
Definition of full coupon bond from QFinance - The Ultimate Financial Resource. What is full coupon bond? Definitions and meanings of full coupon bond.
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- A Model for Valuing Bonds and Embedded Options - Faculty Pages
new, full-coupon bond of the same maturity. Suppose, for ex- ample, that one needs to value a. 10-year, option-free bond. If the yield to maturity of an on-the- ...
- Bond
Full coupon bond: • A bond with a coupon equal to the going market rate and consequently selling at or near par. • A bond with a coupon equal to the going ...