Coupon rate

Also found in: Encyclopedia, Wikipedia.

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 ministry stressed that the coupon rate is comparable to the yields on Lebanese Eurobonds traded in the international markets over the past few months, and close to the coupon rate of the last issuance by the ministry in March 2017.
The aggregate nominal amount of the notes and the final coupon rate will be determined after the subscription period and announced in a final terms confirmation announcement through Nasdaq Copenhagen.
The Treasury noted that when it last issued new seven-year T-bonds in March 2014, the IOUs' coupon rate was a similar 3.
7 billion ten year bonds, carry a coupon rate of 4.
The coupon rate is the interest rate stated on bonds at their issuance.
13 July 2012 -- Russian lender VTB Bank has set a 4% coupon rate on its three-year Eurobond offer, news agency Prime reported today, citing an industry source.
The ten-year bond was issued on 24 May and will pay a coupon rate of 3.
The firm plans to sell the notes in three parts, which includes USD700m with a coupon rate of 1.
5bn, USD650m of the bonds are due on January 14, 2014 and carry a coupon rate of 1.
In particular, he shows that if the coupon rate equals the yield, then immediately after the coupon is paid, a bond will sell for its par value.
So, if a bond has a face value of Rs 1,000 and a coupon rate of 10 per cent, it will pay Rs 100 as interest every year.
So, if a bond has a face value of Rs 1,000 and a coupon rate of 10, it will pay Rs 100 as interest every year.