Question Details

	Username: Peter Rating: Asked to: Chaoxiang Lee Date Created: 14 Nov 2017
Category	46
Tag	Financial
Question	What is a 'Coupon'?

Advice from Guru

Hi Peter,

The annual interest rate paid on a bond, expressed as a percentage of the face value.

It is also referred to as the "coupon rate," "coupon percent rate" and "nominal yield."

For example, a $1,000 bond with a coupon of 7% pays $70 a year. Typically these interest payments will be semiannual, meaning the investor will receive $35 twice a year.

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