### Learning Center: Coupon Rate vs. Effective Rate - Blogger

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Coupons are normally described in terms of the coupon rate, which is calculated by adding the total amount of coupons paid per year and dividing by the bond's face value. For example, if a bond has a face value of $1,000 and a coupon rate of 5%, then it pays total coupons of $50 per year. For the typical bond, this will consist of semi-annual payments of $25 each.

*Actived: Friday May 31, 2019*

*Link: https://damn-best.blogspot.com/2013/02/coupon-rate-vs-effective-rate.html*