Coupon Rate

byPaytm Editorial TeamLast Updated: December 12, 2025

Meaning & Definition

Coupon rate is the annual interest rate paid by a bond issuer to bondholders. It is expressed as a percentage of the bond’s face value and determines the regular income from the bond.

Key Features

  • Expressed as a percentage
  • Determines bond interest payments
  • Fixed or floating rates
  • Helps investors plan income

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