The coupon rate (nominal rate, or nominal yield) of a fixed income security is the interest rate that the issuer agrees to pay to the security holder each year, expressed as a percentage of the security's principal amount or par value.[1] The coupon rate is typically stated in the name of the bond, such as "US Treasury Bond 6.25%". Unlike current yield, it does not vary with the market price of the security.
Coupon rates are fixed for the life of the security, except in the case of floating-rate bonds.[2]
| |
---|---|
| |
Types of bonds by issuer |
|
Types of bonds by payout |
|
Bond valuation |
|
Securitized products |
|
Bond options |
|
Institutions |
|
This economics-related article is a stub. You can help Wikipedia by expanding it. |