Full Coupon Bond

Posted in Finance, Accounting and Economics Terms, Total Reads: 676

Definition: Full Coupon Bond

A full coupon bond is a bond with a coupon rate nearly equal to the market interest rate. Such a bond will be selling at its face value.

However, if the market interest rates change (while the coupon rate remains constant), the price of the bond will rise or fall and it will no longer be a full coupon bond.

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