On a fixed rate bond which of the following generally remain constant.

Question

Quizplus · Accepted Answer

On a fixed rate bond, the face value and the coupon rate generally remain constant. The face value is the amount that the bond will be worth at maturity, and the coupon rate is the fixed annual interest rate that the bond issuer agrees to pay to the bondholder. These two values are typically set at the time of issuance and do not change over the life of the bond. The yield and market price, on the other hand, can fluctuate depending on market conditions and investor demand.

On a Fixed Rate Bond Which of the Following Generally