coupon-equivalent rate
1 dictionary results for: coupon-equivalent rate
Wallstreet Words - Cite This Source - Share This
coupon-equivalent rate
- An alternative measure of yield that is used to make securities usually quoted on a discount basis comparable with those quoted on the more usual return on the amount invested. Stating interest at the coupon-equivalent rate is useful for securities, such as Treasury bills and commercial paper, sold at discounts from face value. As an example, a $10,000, 91-day Treasury bill selling for $9,750 is usually quoted at
However, the coupon-equivalent rate calculated on the amount of money invested is
See also bank-discount basis.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott.
Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company.
Cite This Source
Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company.
Cite This Source
Share This:
Copyright © 2008, Dictionary.com, LLC. All rights reserved.
