Nominal yield
The coupon rate (nominal rate, or nominal yield) of a fixed income security is the interest rate that the issuer agrees to pay to the security holder each year, expressed as a percentage of the security's principal amount or par value.[1] The coupon rate is typically stated in the name of the bond, such as "US Treasury Bond 6.25%". Unlike current yield, it does not vary with the market price of the security.
Coupon rates are fixed for the life of the security, except in the case of floating-rate bonds.[2]
References
- v
- t
- e
Bond market
- Bond
- Debenture
- Fixed income
- Agency bond
- Corporate bond
- Senior debt
- Subordinated debt
- Distressed debt
- Government bond
- Infrastructure bond
- Municipal bond
- Global bond
- Accrual bond
- Auction rate security
- Callable bond
- Commercial paper
- Consol
- Contingent convertible bond
- Convertible bond
- Exchangeable bond
- Extendible bond
- Fixed rate bond
- Floating rate note
- High-yield debt
- Inflation-indexed bond
- Inverse floating rate note
- Lottery bond
- Perpetual bond
- Puttable bond
- Reverse convertible securities
- Zero-coupon bond
This economics-related article is a stub. You can help Wikipedia by expanding it. |
- v
- t
- e