Alternatively, for every 1% decrease in interest rates, the bond will increase 1% for every year of duration. For example, if interest rates rose by 2%, a 10-year Treasury with a coupon of 3.5% ...

When a new bond is issued, the interest rate it pays is called the coupon rate, which is the fixed annual payment expressed as a percentage of the face value. For example, a 5% coupon bond pays $ ...

For example, if an investor requires a 4% return and the bond pays an annual coupon of 40, the bond's value would be $1,000. Meanwhile, the yield of a perpetual bond is determined using the ...

When a Treasury bond is "stripped," to become a Strips, its coupon payments and principal ... received until the security matures. For example, if you purchase Strips at a discounted price of ...

Yield to maturity is crucial in baby bond analysis. Yield to call can also be relevant when call risk is more relevant. Click ...