Vladimir Putin calls Donald Trump to congratulate him. President-elect Donald Trump talked to Russian President Vladimir Putin on Monday. Trump was repeatedly attacked for praising the autocratic Putin during the election, particularly in light of allegations that Russia attempted to influence the campaign.
If you purchase a bond with a 6.0% coupon at par, its yield to maturity is 6.0%. If you pay more than par, the yield to maturity will be lower than the coupon rate. If purchased below par, the bond will have a yield to maturity higher than the coupon rate. When the price of a tax-exempt bond increases above its par value, it is said to be selling at a premium. When the security sells below par value, it is said to be selling at a discount. previous | next.
Your bond has a 4% coupon rate. The coupons are fixed; no matter what price the bond trades for, the interest payments always equal $40 per year. The coupon rate is often different from the yield. A bond's yield is more accurately thought of as the effective rate of return based on the actual market value of the bond. At face value, the coupon rate and yield equal each other. If you sell your $1,000 bond at a $100 premium, the bond's yield is now equal to $40 / $1,100, or 3.63%.