Coupon Rate Calculator

What is a bond’s coupon rate?

The coupon rate is the fixed annual interest a bond pays, expressed as a percentage of its face (par) value. It’s set when the bond is issued and, unlike the yield to maturity, does not change over the bond’s life.

How this calculator works

The formula is: Coupon Rate = (Annual Coupon Payment ÷ Face Value) × 100. For example, a bond with a $1,000 face value that pays $50 per year has a 5% coupon rate. If coupons are paid twice a year, the calculator also shows the semiannual payment (half the annual amount).

• The coupon rate is fixed at issuance and reflects prevailing interest rates at that time.
• It is different from a bond’s current yield or yield to maturity, which depend on the bond’s current market price.

This calculator is for general educational and planning purposes only and is not investment advice.