Coupon, the coupon rate is the periodic interest payment that the issuer makes during the life of the bond.
A company issues 10-year bonds with a face value of 10,000 each and a coupon.
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Learn more about bond basics).Yield to Maturity, since bonds trade on the open market, the actual yield an investor receives if they purchase a bond after its issue date email addresses of women looking for sex in colorado (the yield to maturity) is different than the coupon rate.What is 'Maturity Date the maturity date is the date on which the principal amount of a note, draft, acceptance bond or another debt instrument becomes due and is repaid to the investor and interest payments stop.Maturity date, registered sex offenders in canada map the maturity date is the date on which an investor can expect to have his or her principal repaid.A bond with a longer term to maturity, or remaining time until its maturity date, tends to offer a higher coupon rate than a bond of similar quality but with a shorter term to maturity.
It is similar in meaning to "redemption date".
The maturity date represents the point at which the issuing party must return the principal or par value associated with the security, in addition to all unpaid interest.This can also be referred to as par value or face value.Simply put, YTM is the yield calculation used to compare the values of bonds with different issue and maturity dates, coupon rates, and par values.Maturity value the amount of money the issuer will pay the holder of a bond at the maturity date.Thomas Kenny, updated February 21, 2017, most individual bonds have five features when they are issued: issue size, issue date, maturity date, maturity value, and coupon.Bond Investing, basics, photoAlto/Eric Audras / Getty Images,.This is because a bond's price is less volatile the closer it is to maturity.Though there are exceptions to the rule, most bonds are issued with a 1,000 par value.
To illustrate, consider the situation of an investor who in 1986 bought a 30-year Treasury bond with a maturity date of May 26, 2016.