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 ?
Demand was in excess of RUB 8 billion, which allowed Sistema to increase the size of the issue from a planned RUB 5 billion to RUB 6.5 billion and set the 1-8 coupon rates at 9.80% per annum (tender offer yield of 10.04%).
It is added moreover that under the exchange, domestic law bonds of e1/41 billion, that are due to expire within the EU-IMF programme period, will be replaced by new bonds with the same coupon rates but with the maturity dates of the new securities extended to outside the programme period.
The tax-free bonds, distributed under two series of 10 years and 15 years, offer coupon rates of 7.22% and 7.38%, respectively, for institutional and high net worth investors (HNIs).
The fourth and the fifth tranches were issued in the amount of USD1bn each with coupon rates of 2.875% and 4.125% and maturities on 24 February 2022 and on 24 February 2042, respectively.
State-run Krung Thai Bank (KTB.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.
Wrapped notes receive a higher credit rating, allowing companies to raise higher proceeds at lower coupon rates.
If the debt is purchased at par, expected inflation will also be reflected by the difference in the coupon rates. In fact, this was one of the arguments put forward as to why these instruments will be beneficial; they will provide indirect evidence on expected inflation.
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.
That is not to say the new loans would necessarily require higher coupon rates. Most of the market movement was Treasury rates falling while commercial lending rates stayed more or less constant.
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. Because bondholders were dissatisfied with losses occasioned by downgradings in the wake of unanticipated restructurings, many corporations included protection against this special risk in their new bond issues to reduce borrowing costs.
The proceeds of the issue will be used for the refinancing of existing debt through the buy-back of parts of two outstanding bonds, maturing in 2018 and 2019, with coupon rates of 3.875% and 1.875%, respectively.
The first four coupon rates were set on 2 December 2011 at 9.99%, while the fifth to eighth coupon were determined at 9.74%.