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Coupon rate

   Also found in: Wikipedia 0.06 sec.
Coupon rate
In bonds, notes, or other fixed income securities, the stated percentage rate of interest, usually paid twice a year.

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.



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? Mentioned in ? References in periodicals archive
 
The 10-year, fixed rate, non-recourse loan had a coupon rate of 6.
issued $200 million of 10-year notes that will pay a coupon rate of 5%, marking the company's fourth debt offering since early 2003.
For example, a $1,000 bond with an 8% coupon rate will pay investors $80 a year, in payments of $40 every six months.
 
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