Fixed income instrument

chandniwadhwani92
Finance Junkie
Posts: 166
Joined: Mon Oct 06, 2014 7:36 am

Fixed income instrument

Postby chandniwadhwani92 » Wed Dec 24, 2014 1:50 pm

Difference between interest expenses on bonds and coupon payments
Are interest expenses included in coupon payments

edupristine
Finance Junkie
Posts: 722
Joined: Wed Apr 09, 2014 6:28 am

Fixed income instrument

Postby edupristine » Fri Dec 26, 2014 10:21 am

If bond is issued at premium Coupon should be higher than interest payment because of low interest rate in the market.
And vice versa on discount bond, Hence the idea is to achieve face value at the end of maturity by converging PV to FV.


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