A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a year divided by the face value of the bond in question).It is also referred to as the "coupon rate," "coupon percent rate" and "nominal yield."

Current yield = annual payments ÷ market value of the bond

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