1. The coupon rate refers to the interest rate marked on the bond, and the actual interest rate refers to the interest return that savers or investors receive after excluding the inflation rate.
2. Bond coupon rate (Couponrate) Coupon rate refers to the interest rate marked on the bond. The ratio of one year's interest to the face amount is its amount. A percentage equal to the total annual interest payable to bondholders on a bond divided by the total face value of the bond. The level of the coupon rate directly affects the financing costs of the security issuer and the investment income of investors. It is generally determined by the security issuer based on the bond's own situation and analysis of market conditions. The interest payment method of a bond refers to the way in which the issuer pays interest to bondholders in batches during the validity period of the bond. The interest payment method of the bond also affects the income of investors.
3. The actual interest rate (EffectiveInterestRate/Realinterestrate) refers to the real interest rate at which savers or investors receive interest returns after excluding the inflation rate. Whichever country has a higher real interest rate will have better creditworthiness of its currency, and the chance of hot money going there will be higher. For example, if the real interest rate of the U.S. dollar is increasing and expectations of the Federal Reserve raising interest rates continue, then the flow of international hot money investment into the United States will be more obvious. There are many ways to invest, such as bonds, stocks, real estate, antiques, foreign exchange... Of these, the bond market is the most sensitive to these rates and real interest rates. It can be said that the exchange rate of the US dollar basically follows the trend of real interest rates.
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