Definition of Coupon rate:
Coupon rates for security can be calculated by dividing the number of coupon annual payments for a security by the value of the security. For example, a $ 1,000 bond that pays a $ 25 semi-national coupon has a پن 5 coupon rate. If all things being equal, securities with coupon rates are preferred by investors over securities with lower coupon rates.
Annual interest rate on security. See also voucher.
Coupons are refundable on a fixed income guarantee. A coupon for a fixed income security is just an annual coupon payment that the issuer pays against the face value or price of the security. The coupon fee, or coupon payment, is the result of a bond paid on the date of issue. This rate of return changes with the change in the value of the security, which allows the security to maintain its rate of return till maturity.
How to use Coupon rate in a sentence?
- Maturity in production is the difference between buying a security in the secondary market and paying interest on the security, which may be more or less than the security coupon at the time of issuance.
- When the market grows and becomes cheaper, the coupon holder earns less than the current market conditions because the security does not pay as much as its price was fixed in this issue.
- Coupons are refundable on a fixed income guarantee.
Meaning of Coupon rate & Coupon rate Definition