What is coupon rate and coupon payments?
This is what i understand so far, hope it correct:
Coupon rate: fixed interest rate borrowers must pay to lenders.
Coupon payments: Interest paid by bond issuer to investor.
Also, i want to know who can issue bonds? (Just government?)
What is their advantages of issuing a bond?
And who can lent this money? e.g firms only or can anyone loan it?
Please give me simple explaination as I am new to these terms. Thank you.
Answer:
Corporations, in addition to municipal governments and the U.S. Teasury, all issue bonds.
Bonds are issued to raise financial capital. The issuer gets money today in exchange for a promise to repay funds in the future.
Anyone who buys a bond is a lender, since bond buyers pay money now in exchange for repayment in the future. The U.S. Treasury, banks in different countries, and private citizens all buy bonds.
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Help.....?
Coupon rate: fixed interest rate borrowers must pay to lenders.
Coupon payments: Interest paid by bond issuer to investor.
Also, i want to know who can issue bonds? (Just government?)
What is their advantages of issuing a bond?
And who can lent this money? e.g firms only or can anyone loan it?
Please give me simple explaination as I am new to these terms. Thank you.
Answer:
Corporations, in addition to municipal governments and the U.S. Teasury, all issue bonds.
Bonds are issued to raise financial capital. The issuer gets money today in exchange for a promise to repay funds in the future.
Anyone who buys a bond is a lender, since bond buyers pay money now in exchange for repayment in the future. The U.S. Treasury, banks in different countries, and private citizens all buy bonds.
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