™For a $1,000 bond, even a small change connected to coupon rate can affect income, market value or sensitivity to rates.
Bonds & Rates
Coupon rate
The annual interest stated on a bond as a percentage of its face value.
Plain-English context
Why it matters
Fixed-income terms connect promised cash flows with interest-rate, credit and purchasing-power risk.
Assuming Coupon rate has one universal interpretation without checking the source, rules, timeframe or methodology.
Use current definitions. Product terms, tax treatment and market rules can change. Confirm important details with official disclosures, regulators and regulated providers.