Question

What is Coupon Rate in the context of bonds?

a.

The market interest rate

b.

The rate of return on investment

c.

The rate of interest payable to the bondholder

d.

The rate of tax on bond income

Answer: (c).The rate of interest payable to the bondholder Explanation:Coupon Rate refers to the rate of interest payable to the bondholder.

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Q. What is Coupon Rate in the context of bonds?

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