Extra 60% Off Using Discount Code
For zero-coupon bonds, which don’t have coupon payments, the coupon equivalent yield is simply the amount paid for the bond divided by the dollar return. For example, if the Company XYZ bond had been a T-bill, the coupon equivalent yield would be: ($10,000 - $9,950) / $9,950 = 0.50%. As you can see, the coupon makes a big difference.
Show Coupon Code