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2

There is no need to resort to negative-coupon bonds. A negative $R_t$ is simply a negative payment. For a simple example, build a portfolio consisting of being long a $n$ maturity bond paying a coupon C on $t \in \left\lbrace 1, 2, ..., n \right\rbrace$ and short a zero-coupon bond with face value $V > C$ maturing at $t^*$. Then, $R_t > 0$ for \$t \ne ...

6

The answer is NO, with very few exceptions There might be bonds with negative coupon(s), and the Bloomberg search even finds some, but there are plenty of reasons why negative coupons are impractical. Instead of having negative coupons on the issue, there are bonds with low or 0 coupons, issued at a premium and having a negative yield. Here are some of ...

0

In Bonds with a negative yield the duration should be longer than the maturity. Duration is the length of time for the return of the fund. As long as the coupons are positive, the investor returns the fund before the final redemption, in a negative interest rate situation the negative interest rate eats from the fund and the duration should be longer ...

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