Coupon Rate
InvestingThe annual interest rate paid by a bond issuer on the bond's face value, expressed as a percentage.
Example
Example: Consider an investor building a $100,000 portfolio. Coupon Rate — the annual interest rate paid by a bond issuer on the bond's face value, expressed — directly affects investment strategy and long-term returns. Getting this concept right can mean tens of thousands of dollars in difference over a 20-year period. Model your portfolio with our investment calculator.