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Monday, 5 January 2015

Percentage rate of the bond’s face Value.

http://en.wikipedia.org/wiki/Fixed_rate_bond

The coupon rate attached to the fixed-rate bond is payable at specified dates before the bond reaches maturity; the coupon rate and the fixed-payments are delivered periodically to the investor at a percentage rate of the bond’s face value. Due to a fixed-rate bond’s lengthy maturity date, these payments are typically small and as stated before are not tied into interest rates.

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