™A 5% coupon on $1,000 face value schedules $50 of annual interest, even if the bond's market price changes.
Bonds & Rates
Coupon rate
The annual interest stated on a bond as a percentage of its face value.
Plain-English context
Put the definition to work.
Coupon uses face value, not your purchase price; it is different from current yield and yield to maturity.
Further reading and verification. Examples are hypothetical, not current quotes or recommendations. Product terms, tax treatment and market rules can change. Investor.gov — bonds and fixed income