Kuponkikorkoa

Kuponkikorkoa, also known as coupon rate or nominal interest rate, is the stated interest rate on a bond, loan, or other debt instrument. It represents the periodic interest payment that the issuer agrees to make to the bondholder or lender. This rate is typically expressed as an annual percentage of the bond's face value.

The coupon payment is calculated by multiplying the coupon rate by the bond's face value. For example, a bond with a face value of $1,000 and a coupon rate of 5% would pay $50 in interest annually. These payments are usually made semi-annually, meaning the bondholder would receive $25 every six months.

It is important to distinguish kuponkikorkoa from the bond's yield. While the coupon rate is fixed at the time of issuance, the yield can fluctuate based on market conditions and the bond's current market price. If a bond is trading above its face value (at a premium), its yield will be lower than its coupon rate. Conversely, if a bond is trading below its face value (at a discount), its yield will be higher than its coupon rate. The coupon rate remains a key factor in determining the initial attractiveness and expected cash flows of a debt instrument.