Why do the coupon rates for the various bonds vary so much?
Why do the coupon rates for the various bonds vary so much?
Posted on February 24, 2010 at 9:12 am by admin · Permalink
In: Coupon Q&A · Tagged with: bonds, coupon rates
In: Coupon Q&A · Tagged with: bonds, coupon rates
on February 24, 2010 at 9:12 am
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because different companies carry different levels of risk.
on February 24, 2010 at 9:12 am
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If they were issued at different times then the coupon rates would vary to reflect the rate when issued.
on February 24, 2010 at 9:12 am
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It is based on both credit risk differences and liquidity for the different maturities of the bonds.