Finance
Full Coupon
August 19, 2021
Derivatives
Calculation of Default Probability Using CDS Spread
August 19, 2021

A bond with a current coupon has an interest coupon very close to the coupons being carried on new issues of the same maturity. Newly issued securities carry an interest rate called current coupon and, thus, must be selling at a price close to their par value. Fixed-income securities with a current coupon pay interest at the rate currently required by buyers of securities of the same maturity and credit quality.

It is also called full coupon.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts