Coupon rate is the coupon rate is the interest rate that the issuer of a bond or other debt security promises to pay during the term of a loan. For example, a bond that is paying 6% annual interest has a coupon rate of 6%. The term is derived from the practice, now discontinued, of issuing bonds with detachable coupons. To collect a scheduled interest payment, you presented a coupon to the issuer or the issuer's agent. Today, coupon bonds are no longer issued. Most bonds are registered, and interest is paid by check or, increasingly, by electronic transfer.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). coupon rate. Retrieved September 22, 2026, from http://smartdefine.org/coupon_rate/definitions/1150988 |
| Chicago | Barry Goldsmith. 2010. "coupon rate" http://smartdefine.org/coupon_rate/definitions/1150988 (accessed September 22, 2026). |
| Harvard | Barry Goldsmith 2010, coupon rate, Smart Define, viewed 22 September, 2026, <http://smartdefine.org/coupon_rate/definitions/1150988>. |
| MLA | Barry Goldsmith. "coupon rate" 21 October 2010. Web. 22 September 2026. <http://smartdefine.org/coupon_rate/definitions/1150988> |