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November 18, 2019

Definition of Covariance

Covariance is a statistical term used in security and portfolio evaluation, and it measures the amount which two assets move in relation to each other. A positive covariance means the assets move in t...

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...