How to Find the Interest Rate on a Bond?

Answer A bond is effectively a private way to get a loan. Many companies use bonds to raise capital. The company gives the bond a par value, which is the face value of the bond, and the interest payment w... Read More »

Top Q&A For: How to Find the Interest Rate on a Bond

What is the interest rate on a bond called?

The interest rate paid on a savings bond is called the bond's coupon. The rate, expressed in percentage, and maturity duration are printed on the bond's face. Lenders pay coupon semiannually until ... Read More »

What describes the interest rate risk of a bond?

A bond is essentially a loan made by investors to a company or government in exchange for a promise of repayment of the loan, with interest. All bonds that pay interest are subject to interest rate... Read More »

Which bond has the greatest interest rate price risk?

On One Hand: Bonds with Longest Maturity Carry Greater RiskTraders use a concept called duration to calculate the price risk of a bond in response to changes in interest rates. The higher the durat... Read More »

How To Find the Interest Rate for Debt Financing?

If you need to have a purchase financed, find out what the interest rate will be. This will be the actual cost of borrowing the money. The higher your rate, the more you will pay in finance charges... Read More »