Normally issued by provinces, this feature indicates that the borrower must set aside a certain percentage of money every year but does NOT have to buy that specific one. Yield-current, to maturity . This is basically what an investment returns. Current yield of a bond is the coupon rate divided by the price. However, it is misleading because bonds have a maturity date and the difference between the market price and the value at maturity must be factored into the yield.
Discount rate is a symbolic rate.
As well, in the event of emergencies, where a credit crunch is taking place, loans will actually take place at the discount window. In this case 'discount' refers to a rate applied to a future sum to arrive at a present value. It also refers to bonds trading at less than their face value or par value. Reinvestment risk . There are two basic risks.