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How do investors calculate the yield on a bond based on its coupon rate and the current market price? 7. What strategies do investors use

 How do investors calculate the yield on a bond based on its coupon rate and the current market price?


7. What strategies do investors use to reinvest coupon payments in order to maximize their returns?


8. How do coupons affect the valuation of corporate bonds, and what role do credit ratings play in this process? 


9. What is the difference between a bond's coupon payment and its principal payment, and how do these payments work together to repay the bond? 


10. What is the relationship between a bond's coupon payment and its maturity date, and how do investors use this information to evaluate the bond? 

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1 Investors calculate the yield on a bond based on its coupon rate and the current market price using the following formula Yield Annual coupon paymen... blur-text-image

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