| 释义 |
DictionarySeeCERCoupon Equivalent Rate
Coupon Equivalent RateAn alternative method of calculating the yield on a bond. It is used for zero-coupon bonds, as these are issued at discounts to their face value; that is, the CER states what the coupon rate would be if it carried a coupon and had been sold at face value. As such, it gives a more accurate picture of the yield of a zero-coupon bond. It is calculated as:
CER = ((Market Price - Face Value) / Market Price) * (365 / Days until Maturity). |