Coupon Rate Calculator

Calculate bond coupon rates quickly with our Coupon Rate Calculator. Input face value and current price. Try now!

Result Coupon Rate 0%

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Coupon Rate Formula

Coupon Rate = (Annual Coupon Payment / Face Value) * 100


  • Annual Coupon Payment: The annual interest payment made by the bond.
  • Face Value: The nominal value of the bond.

This formula helps investors understand the annual return generated by a bond relative to its face value.

Coupon Rate Meaning

The coupon rate, often expressed as a percentage, represents the annual interest payment made by a bond relative to its face value.

Investors use the coupon rate to assess the income potential of a bond. A higher coupon rate typically indicates higher income but may be associated with greater risk.

Conversely, a lower coupon rate may indicate lower risk but results in lower income. Understanding coupon rates helps investors make informed decisions when selecting bonds for their portfolios.

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