Kuponkikoroista

Kuponkikoroista refers to the Finnish term for "coupon interest" or "coupon rate" in the context of bonds and other fixed-income securities. It represents the annual interest payment that a bond issuer agrees to pay to the bondholder, expressed as a percentage of the bond's face value. This rate is fixed at the time the bond is issued and remains constant throughout its life, regardless of market interest rate fluctuations.

The coupon interest is typically paid out to the bondholder at regular intervals, most commonly semi-annually or annually. For example, a bond with a face value of €1,000 and a coupon rate of 5% would pay the bondholder €50 in interest per year. This €50 would usually be divided into two payments of €25 each if paid semi-annually.

The coupon rate is a crucial factor for investors when evaluating a bond. It helps determine the bond's yield, which is the total return anticipated on a bond if it is held until maturity. While the coupon rate itself is fixed, the bond's market price can fluctuate, affecting its current yield. Bonds trading at a discount to their face value will have a current yield higher than their coupon rate, while bonds trading at a premium will have a current yield lower than their coupon rate. Understanding kuponkikoroista is essential for anyone involved in bond investing.