Because of this safety feature, tempered glass is used in the side and rear windows of automobiles made in the United States, as well as in the windshields of some foreign- made cars. Flotation is a method used by scientists to determine the ________________ of a particle of glass.
Coupon tells us the rate of returns(%) for the bonds when it was first issued based on issue price. Yield tells us the rate of returns(%) for the bond based on current price. Assuming a bond was issued at $1000, promising to pay $50 yearly, it has a coupon rate of 5% & yield of 5%. However, if due to unforseen circumstances the bond price drops to $500, it still has a coupon rate of 5% but the yield is currently 10%. Coupon (%) = Returns / Issue Price * 100.
1. The yield to maturity is the required rate of return on a bond expressed as a nominal annual interest rate. For noncallable bonds, the yield to maturity and required rate of return are interchangeable terms. Unlike YTM and required return, the coupon rate is not a return used as the interest rate in bond cash flow valuation, but is a fixed percentage of par over the life of the bond used to set the coupon payment amount. For the example given, the coupon rate on the bond is still 10 percent, and the YTM is 8 percent. 2.