The Coupon Rate is a key term in the world of finance and investments. It refers to the annual interest rate that is paid by a bond issuer to the bondholder. This rate is expressed as a percentage of the bond's face value, also known as the par value. The coupon rate is an important factor to consider when investing in bonds as it directly affects the return on investment. In this article, we will delve deeper into what the coupon rate is, how it is calculated, and its significance in the bond market.
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