What do you mean by Coupon rate?

Modified on Mon, 24 Jun at 12:36 PM

The coupon rate of a bond is the fixed annual interest rate that the issuer pays to the bondholders. It's typically expressed as a percentage of the bond's face value.

ex- If a bond has a face value of 1,000 and a coupon rate of 5%, the issuer will pay 50 in interest annually (1000*5%)

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