Join Mailing List

For latest news and information about Treasury and Financial Markets, enter your details below:

Fixed coupon bonds

Print Preview Send to a Friend Share

Published: 4th March 2010 by William webster

A bond is a long term debt obligation. It is sold by the borrower who is called the "issuer" in order to borrow money for the medium and long term. Typically a bond will have a maturity of between 2 and 20 years. The issuer can be a bank, company or government institution. A bond normally has a known maturity or redemption date and during its life pays the investor interest. The interest payments are called "coupons". Bond investors rank prior to equity holders in liquidation but are subordinate to secured lenders. From an issuer's perspective the coupons are usually tax deductible (unlike dividend payments on equity). Bond markets provide investors with variety. One of the most frequently issued bonds is called a fixed coupon bond. This is also referred to as fixed income security or fixed rate bond.

Buy the full article now for just £4.95

If you have already purchased this article, login to view it.

Related Documents

Payment Requiredelearning > Fixed rate bonds 100% relevant

Learn about the following: What fixed rate bonds are and how they work. Some of the key terms used in the market. Why issuers and investors use fixed rate bonds. How fixed rate bonds can be evaluated. The risks fixed income bonds have.


Registration RequiredBonds Explained 88% relevant


Payment RequiredZero coupon bonds 83% relevant

5th March 2010

A bond is a long term debt obligation. It is sold by the borrower who is called the "issuer" in order to borrow money for the medium and long term. Typically a bond will have a maturity of between 2 and 20 years. The issuer can be a bank, company or government institution. Zero coupon bonds are unusual. They pay the investor no regular interest and although they represent a small proportion of the bond market zero coupon bonds can have advantages for both the issuer and investor.


Free to ViewAn Introduction to bonds - 29th May 2012 75% relevant

19th January 2012


Payment RequiredMarket Guides > Zero coupon discount factors 69% relevant

19th September 2009

Present value (PV) calculations are commonly used in financial markets. They are particularly relevant to over-the-counter derivatives. Their use includes pricing and marking-to-market transactions. PV uses a discount factor to convert future money into today's money. The sum of any deal's cash flows in present value terms is referred to as the net present value (NPV). From a dealer's perspective this is important. Transactions with positive NPVs equate to profit and those with negative NPVs losses. The following is an introductory explanation to zero coupon discount factors. The examples use USD rates where the instruments pay interest on an actual/360 day count basis.


Free to ViewBond Markets 59% relevant