Coupon rate


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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 ?
The yearly coupon rate is dependent on an yearly fixed escalation factor.
The bank had earlier raised a seven-year infrastructure bond worth INR5bn, with a green shoe option of INR5bn and a coupon rate of 9.
The coupon rate is the interest rate stated on bonds at their issuance.
For most bonds, the coupon rate is fixed, but for some it is adjustable to a benchmark.
With this recent conversion, we currently have approximately 50 percent of our outstanding debt in yen denominated notes with an average coupon rate of 2.
A debt security is sold at a discount when the prevailing market rate is greater than the instrument's coupon (face rate) or when the issuer's credit rating declines between the time the coupon rate is set and the date the security is issued.
For example, a $1,000 bond with an 8% coupon rate will pay investors $80 a year, in payments of $40 every six months.
Antonatos: Perpetual preferred shares are equity shares issued by public companies including REITs that can be traded like common shares, but that have a set coupon rate like a bond.
If the market rate is greater than the coupon rate, the bond will trade below par (at a discount).
After an initial period, the coupon rate is raised.
The first coupon rate is expected to be within the range of 10.