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November 18, 2019

Definition of Coupon Rate

The coupon rate is the interest that a bond pays when it is issued. For example, a $100,000 bond with a coupon rate of 2.5% will pay $2500 per year. The interest is usually split into several payments...

November 18, 2019

Definition of Counterparty Risk

Counterparty Risk is the risk that an investor is exposed to when taking out any kind of contractual position (CDS, option, future etc.) The risk is that one (or both) of the parties involved will not...

November 18, 2019

Definition of Convertible bonds

Convertible bonds are a security which is issued by a company as a means of raising money. They are essentially a combination of debt and equity. Convertibles are issued as bonds with an interest rate...