Coupon rate

(redirected from Coupon Rates)

Coupon rate

In bonds, notes, or other fixed income securities, the stated percentage rate of interest, usually paid twice a year.

Coupon Rate

The interest rate that a bond pays to a bondholder, usually semi-annually. The coupon rate is stated on the bond. This is also called the nominal yield or the yield rate.

Coupon rate.

The coupon rate is the interest rate that the issuer of a bond or other debt security promises to pay during the term of a loan. For example, a bond that is paying 6% annual interest has a coupon rate of 6%.

The term is derived from the practice, now discontinued, of issuing bonds with detachable coupons.

To collect a scheduled interest payment, you presented a coupon to the issuer or the issuer's agent. Today, coupon bonds are no longer issued. Most bonds are registered, and interest is paid by check or, increasingly, by electronic transfer.

References in periodicals archive ?
9 billion, representing applications from 86 investors with annual coupon rates ranging from 8.
BK), Thailand's second biggest lender, has fixed coupon rates for a 10-year subordinated debenture, which will be issued by mid-February, reports Reuters.
The first coupon rate is determined at a tender held by the Moscow Interbank Currency Exchange (MICEX), the coupon rates from two to eight will be equal to the first coupon rate, while the remaining coupon rates will be determined by the issuer.
Coupon rates will be reset twice a year thereafter, based on auction results of regular 10-year government bonds, and interest payments will also be made twice a year, the ministry said in a statement.
With the repayment of the debt from many mergers hinging on subsequent sales of assets, acquirers turned to new sources of temporary financing from commercial and investment banks and made innovative use of bonds with deferred interest payments and variable coupon rates.
The maturities of the $900 million Senior Notes range from 7 to 15 years and carry final coupon rates of 5.
BK), Thailand's third-largest lender, has fixed coupon rates for its THB20bn (USD631m) of 10-year subordinated debentures scheduled to be issued this month, reports Reuters.
The new coupon rates on the Senior Notes due 2007 will be 6.
consumer ABS transactions, including credit card receivables, student and home equity loans, are exposed to basis risk due to mismatches between the asset and liability coupon rates.
consumer ABS transactions, including credit card receivables, student loans, and home equities, are exposed to basis risk due to mismatches between the asset and liability coupon rates,' said Mezzanotte.
While the new methodology is applicable to a variety of securitization structures, CDO and subprime RMBS are notable because of the risk that arises from mismatches between asset and liability coupon rates.
Finally, you will be guided through finding the basic building blocks for bond pricing called zero coupon rates and try out one such process called bootstrapping.