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If the quantity of loanable funds supplied exceeds the quantity of loanable funds demanded,
Coupon Rate
The annual interest rate paid on a bond, expressed as a percentage of the face value, to the bondholders.
Face Value
Face value is the nominal value stated on a financial instrument such as a bond or a stock certificate, important in determining its maturity value or dividend payments.
Required Rate
The minimum expected rate of return on an investment, necessary to compensate for the risk taken.
Floating Rate Bond
A type of bond whose interest payments vary with changes in market interest rates, also known as a floater or variable rate bond.
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