Coupon Equivalent Rate (CER): Meaning, Formula, Example

The coupon equivalent rate (CER) is an alternative calculation of coupon rate used to compare zero-coupon and coupon fixed-income securities. It is the annualized yield on a zero-coupon bond when calculated as if it paid a coupon. It is also known as the bond equivalent yield(BEY) or the coupon equivalent yield (CEY) See more


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Bond Calculator

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Coupon payment per period (C) = 5% of $1,000 / 2 = $25. Number of periods (N) = 10 years × 2 = 20 periods. Discount rate per period (r) = 6% / 2 = 3% or 0.03. The bond price is calculated by discounting each semi-annual payment and the face value at maturity back to their present value, using a 3% per period rate.

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Yield To Maturity Calculator | Calculate YTM

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Oct 17, 2024  · The face value is equivalent to the principal of the bond. For our example, face value = $1,000. Determine the annual coupon rate and the coupon frequency. The coupon …

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How To Calculate Bond Yield | Charles Schwab

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Jun 9, 2023  · To calculate it, divide the tax-exempt bond's current yield by (1 – your federal tax bracket). For example, if you're in the 32% tax bracket, to match the tax benefits of a tax-exempt bond yielding 3.50%, you would need a taxable bond yielding 5.15%, or 3.5 ÷ (1 – 0.32). What to know: Tax-equivalent yield is the easiest way for investors ...

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