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Bonds used to be paper documents with coupons that investors clipped and turned in to the bank to receive interest. what is the name of this bond interest rate?

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Bonds used to be paper documents with coupons that investors clipped and turned in to the bank to receive interest. The name of this bond interest rate is Coupon rate.

A coupon rate is the component of a bond, which is usually semi-annual but can be paid at different times throughout the year. It's the rate of interest paid by the bond's face value. It demonstrates the periodic rate of interest paid by bond issuers to its purchasers. The coupon rate is calculated by adding up the total amount of annual payments made by a bond, then dividing that by the face value or the par value of the bond.

It is known to us that governments and companies issue bonds to raise money for financing their operations and obligations. The bond issuer promises the purchaser to pay periodic interest payments in the money invested at the coupon rate mentioned in the bond certificate. This payment is made until maturity. The coupon rate is not the same as the interest rate.

Learn more about the coupon rate of bonds: https://brainly.in/question/10035671

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