What is coupon rate?

10 March 2019 | General News

Dr Zhang Weina, Senior Lecturer and Assoc Prof Ruth Tan, both in the Dept of Finance at NUS Business School, shared that choosing a bond with a certain level of coupon rate can help investors reduce their exposure to interest rate fluctuation. They added that if investors expect the interest rate to increase shortly, it is better to hold bonds with high coupon rates as the price drop will be lower.