Coupon Rate Calculator

Calculate the annual coupon rate of a bond based on its face value, annual coupon payment, and years to maturity.

Input Parameters

Calculation Results

Calculation Formula

Coupon Rate = (Annual Coupon Payment / Face Value) × 100%

Where:
Annual Coupon Payment: Total annual coupon payment received by the bondholder
Face Value: The principal amount of the bond that will be paid at maturity

Result

Coupon Rate:

$0.00%

Coupon Rate Calculator Calculator Usage Guide

Learn how to use the Coupon Rate Calculator and its working principles

How to Use the Calculator

  1. Enter the Face Value of the bond (the principal amount that will be paid at maturity)
  2. Enter the Annual Coupon Payment (the total amount of interest paid annually)
  3. Enter the Years to Maturity (the number of years until the bond expires)
  4. Click the Calculate button to compute the coupon rate
  5. The result will be displayed as a percentage

Understanding Coupon Rate

The coupon rate is the annual interest rate paid on a bond, expressed as a percentage of the bond's face value. It remains fixed for the life of the bond and determines the periodic coupon payments received by bondholders.

Example

Suppose you have a bond with a face value of $1,000 and it pays $50 in annual coupon payments. The coupon rate would be calculated as:

Coupon Rate = ($50 / $1,000) × 100% = 5%

Practical Applications

This calculator is useful for:

  • Investors comparing different bonds
  • Bond issuers determining the interest rate for new bonds
  • Financial analysts evaluating bond performance