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.
The first four coupon rates were set on 2 December 2011 at 9.
For realistic coupon rates, say less than 20 percent, the maximum error is less than twelve cents.
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.
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.
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.