Derivatives

Cross Valuation Adjustment

August 19, 2021
Finance

Current Coupon

August 19, 2021

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A bond with a full 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 full coupon and, thus, must be selling at a price close to their par value. Fixed-income securities with a full coupon pay interest at the rate currently required by buyers of securities of the same maturity and credit quality.

It is also called current coupon.

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