Fixed Income
Coupon Rate
Definition
What is Coupon Rate?
The annual coupon amount expressed as a percentage of a bond's face value.
Example in practice
How This Looks in Practice
A bond paying ₦12,000 yearly on ₦100,000 face value has a 12% coupon rate.
Keep learning
Related Terms
Fixed Income
Bond
A debt security through which an investor lends money to an issuer in return for promised payments.
Fixed IncomeIssuer
The government, company, or organisation that creates and sells a security.
Fixed IncomeFace Value
The principal amount stated on a bond and usually repaid at maturity.
Money MarketsTreasury Bill
A short-term government debt instrument usually issued at a discount and repaid at face value.