Bond Coupon Rate | Push Digits Chartered Accountants

Bond Coupon Rate

It is the percentage of the par value of a bond that will be paid as interest annually, usually in two equal semi-annual payments.

For example, if a company issues $1,000,000 of bonds having a stated interest rate of 5%, it is promising to pay interest of $500,000 each year (usually $250,000 semi-annually).

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