Ex-Coupon

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Ex-Coupon

The sale of a bond after a stated date before a coupon is distributed. When a bond is sold ex-coupon, the right to receive the coupon remains with the seller. Selling ex-coupon almost invariably reduces the selling price of the bond. See also: Ex-dividend, Ex-bonus.
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Under the terms of the transaction, EDF Energies Nouvelles would acquire all of the holdings of the controlling shareholders for 1.15 per share (representing a premium of 38.6% to the closing share price on April 24th 2017) and 9.37 per OCEANE convertible bond ex coupon (representing a premium of 39.7% to the closing share price on April 24th 2017).
The dividend will be paid as of 12 May 2011, ex coupon No.
The results in this section hold at the ex coupon date.
Regardless of how the par value is distributed, at the ex coupon date a bond will sell for the remaining par value if and only if the contract rate equals the yield to maturity.
Regardless of how the par value is distributed, a bond will sell at a discount (premium) at the ex coupon date if and only if the contract rate is less than (greater than) the yield to maturity.
Because the error term Q(r) is typically small, as indicated by equation (10), the relationship between the clean price and yield for a bond between payment dates is roughly the same as the relationship between the price and yield on the ex coupon date.