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

Checkout other online study materials on SolutionInn

Join SolutionInn Study Help for

2 Million+ Textbook Solutions

Learn the step-by-step answers to your textbook problems, just enter our Solution Library containing more than 2 Million+ textbooks solutions and help guides from over 1300 courses.

24/7 Online Tutors

Tune up your concepts by asking our tutors any time around the clock and get prompt responses.

Post a Question

Answers from our experts for your tough homework questions