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.
During a low interest rate environment, any time you acquire older bonds that have higher bond coupons, you will actually pay more than the bond's maturity value, leading to a guaranteed loss on the principal repayment portion that, when offset by the higher bond coupon rate results in an effective interest rate that is comparable to those being newly issued at the time.