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 ...

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