India & US Markets · No ads, no stock tips · Pure financial education · Subscribe free →

NIFTY 5024,682+0.42%SENSEX81,456+0.38%S&P 5005,897+0.61%NASDAQ19,247+0.78%BTC/USD$67,420-1.2%ETH/USD$3,510+0.55%GOLD$2,345+0.19%USD/INR83.42-0.05%RELIANCE₹2,943+0.9%TCS₹3,789+0.45%INFOSYS₹1,634-0.3%AAPL$213+1.1%TSLA$248-0.7%MSFT$432+0.8%NIFTY BANK52,340+0.55%CRUDE OIL$81.4-0.3%NIFTY 5024,682+0.42%SENSEX81,456+0.38%S&P 5005,897+0.61%NASDAQ19,247+0.78%BTC/USD$67,420-1.2%ETH/USD$3,510+0.55%GOLD$2,345+0.19%USD/INR83.42-0.05%RELIANCE₹2,943+0.9%TCS₹3,789+0.45%INFOSYS₹1,634-0.3%AAPL$213+1.1%TSLA$248-0.7%MSFT$432+0.8%NIFTY BANK52,340+0.55%CRUDE OIL$81.4-0.3%

Finance Dictionary

Coupon Rate

The fixed annual interest a bond pays, expressed as a percentage of its face value. The coupon never changes, so when market rates move it is the bond's price — not its coupon — that adjusts.

Formula

Annual coupon payment = Face value × Coupon rate

Example

A ₹1,000 bond with an 8% coupon pays ₹80 a year regardless of what it currently trades for in the market.

Bond YieldYTMCredit RatingMaturity