What is Coupon Rate?

Question

Accepted Answer

The Coupon Rate is the fixed annual interest percentage that a bond issuer promises to pay to bondholders based on the bond's face value, serving as the primary determinant of periodic coupon payments.

Coupon Rate

What is Coupon Rate?

How is the Coupon Rate calculated, and what is its significance in determining a bond's cash flow?

How does the U.S. Treasury determine the Coupon Rate for newly issued Treasury Notes and Bonds?

What is the critical difference between the Coupon Rate and the Yield to Maturity (YTM), and why does this matter to investors?

How does the Coupon Rate factor into the tokenization of Real-World Assets (RWA) like bonds on a blockchain?

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