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Coupon payment is calculated with help of interest rate, then this rate considers as

A. payment interest

B. par interest

C. coupon interest

D. yearly interest rate

Answer: Option C

Solution(By Examveda Team)

Coupon payment is calculated with help of interest rate, then this rate considers as coupon interest. A coupon rate is the yield paid by a fixed-income security; a fixed-income security's coupon rate is simply just the annual coupon payments paid by the issuer relative to the bond's face or par value.

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