If so, the price they are willing to pay for the issuer's bonds may drop.
The Irwin guide to stocks, bonds, futures, and options. The coupon rate is expressed in annualized nominal terms. Market prices of zero coupon bonds tend to be more volatile than bonds which pay interest regularly. For guidelines on responsible database usage, see Database Usage. If the issuer is financially strong, investors are confident that the issuer will be capable of paying the interest on the bond and pay off the bond at maturity. Other yield curves are possible, signifying that long-term yields are not higher than short-term yields. These bonds fund capital improvements, expansions, debt refinancing or acquisitions that require more capital than would ordinarily be available from a single lender.
Price is important when you intend to trade bonds with other investors.