Glossary
/Coupon
What is the Coupon Rate?
While the coupon is the actual cash, the coupon rate is the percentage of the bond's original face value. If a bond has a face value of ₹1,000 and pays ₹70 a year, the coupon rate is 7%. The most crucial thing to remember? This percentage remains fixed for the entire life of the bond. Even if you buy that bond on the secondary market for ₹1,200, the company will still pay you the fixed 7% calculated on the original ₹1,000 price.
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