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Coupon Interest Rate: The coupon interest is obtained by dividing the coupon payment by the par value of the bond. The coupon payment is a fixed dollar amount of interest, which paid to a bondholder each year. This payment established at the time the bond is issued.
? Floating-rate bonds: If a bond's coupon payment is vary over time, such bonds are called floating rate, or indexed, bonds. The coupon rate is set for the initial six-month period, after which is adjusted every six months based on market rate.
? Zero coupon bonds: If bonds pay no coupons at all, but are offered at a substantial discount below their par values, and hence, provide capital appreciation rather than interest income...
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