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Quantitative Finance · Glossary

What is Coupon bond?

Also known as: coupon · par

Definition 3.1 Markets II: Rates, FX and Credit · Chapter 3 — Government Bonds

A fixed-coupon bond pays, per 100 of face value, a coupon of c/fc/f on each of ff dates a year and repays its face value, called par, at maturity. The coupon dates are generated backwards from the maturity date in steps of 12/f12/f months; if the maturity is the last day of a month, so is every coupon date.

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