Personal Finance & Money Stack Exchange
Personal Finance & Money Stack Exchange

Questions tagged [bond-coupons]

30 questions
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200%+ return in 10 years from......bonds?

I read an article this morning about a million dollar bet Warren Buffett made with a hedge fund that would take 10 years to determine the outcome. They didn't each put down a million dollars, rather, they put down a certain amount of dollars that…
public wireless
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Do bonds become more valuable right before a coupon payment?

I'm learning about fixed income for the first time and my understanding is that the value of a bond depends on three major variables: The face value The time to maturity The coupon rate a.k.a. the interest rate paid semi-annually or…
Paul Razvan Berg
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Are negative coupon bonds possible?

I am aware that negative yield bonds are possible (e.g. by selling a zero coupon bond at a price greater than par value). Are negative coupon bonds possible? I have not found any real-life examples of bonds that have a negative coupon, so I am…
Flux
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Can someone explain the short-term pattern between time and bond prices

One of the factors that affect bond prices is time. There is a long term pattern and a short term pattern in this. According to my lecture notes they are: Long-term pattern The price of discount or premium bond (greater or below the FV) will move…
CountDOOKU
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Is the need to issue bonds a telltale sign that the company would have a hard time paying coupons?

Background I'm trying to solidify my understanding of bonds, and I have a question regarding something that's probably very basic. Question Say I have a company and I want to issue some bonds in order to fund some of my plans. Let's say I need $1…
Alec
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If a bond has a par value of 1000 and a monthly coupon rate of 3.650%, do I get $36.5 every month until maturity?

I'm looking at bond with CUSIP DSDB66702, which has a monthly coupon rate of 3.650 and a par value of $1000. If I hold this to maturity will I get $36.50 every month before taxes?
Jake
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Could someone help me understand bond information?

I'm currently looking at this website for information on Government of Canada bonds. I was just wondering if anyone could tell me when the coupon payments are made (is there only one at maturity?) and what the yield tells us. For instance, if you…
user3457834
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Does corporate bond coupon has a record date?

I am learning about corporate bond. For example, one has a coupon rate 7% and it is bi-annual (so paid twice a year). From the internet, the coupon payment date is Tuesday (so two days later). If I buy the bond on Monday, am I qualified to receive…
jerry xu
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Calculating the expected return of bonds given a default rate

In The Investor’s Manifesto by William Bernstein, there is an example of calculating the expected return of corporate bonds. It goes like this: Given that 10-year bonds yield an interest coupon of 7 percent and the estimated long-term bankruptcy…
epsylon
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Question Regarding Bond-Coupon Prices with Partial Period Maturity Date

Question: What would you pay for the following bonds assuming an annual yield rate of 7% based on semi-annual compounding (assume face value = $100)? A bond with a coupon rate of 6% maturing in 3 years and 3 months from now? Would I approach this…
wowdavers
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How do I calculate Net Bond Coupon/Yield?

I just wondered on how one can properly get the Net Bond Yield/Coupon given that you had some "trading" that happened. Suppose, I have a group of bonds (say some Treasury bonds). I acquired a 100 Par value bond with a coupon rate of 2%. At the same…
RBD
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compute the price of a 90-day zero coupon bond with a face value of $100 if the market yield is 6 percent

This is a question from a textbook: compute the price of a 90-day zero coupon bond with a face value of $100 if the market yield is 6 percent Unless indicated otherwise, assume that 1 year = 365 days, and that interest is compounded annually and…
B Chen
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When short negative yielding bonds, who pays the coupon

Assuming the bond was actually issued with a negative coupon, if you are short (borrowing someone else's bond to sell the bond at a lower price / higher yield) Who pays the coupon? There are at least three parties here, the issuer, the owner, the…
CQM
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Price of Bond with irregular long first coupon period

I'm trying to manually calculate the price of a bond with a long first coupon period, found a few candidate formulas on Microsoft Excel Document: OddFPrice mit.edu: OddFPrice WestClinTech.com: Calculating price of bond with OFC on SQLServer The…
adoDojo
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How to compute the present value of a bond if the coupons aren't reinvested?

We know that the computation of the present value of a bond assumes that the coupons paid are reinvested at the yield rate. But, what if I don't reinvest the coupons? How can I compute the present value? For example: 100 Future value bond, 6% coupon…
Chris
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