Kuponsumma

Kuponsumma is a term used in finance to describe the periodic cash payment that a debt instrument, such as a bond, pays to its holder as interest. In Finnish usage, kuponsumma literally means the coupon amount. It represents the actual money received at each coupon date and is typically determined by the instrument’s face value (nominal value) and its coupon rate.

In general, the kuponsumma per payment is calculated as face_value × coupon_rate ÷ payments_per_year. For example, a bond with a face value of 1,000 euros and an annual coupon rate of 5% that pays semiannually would make a kuponsumma of 25 euros every six months (1,000 × 0.05 ÷ 2 = 25). If the coupon rate is fixed, the kuponsumma remains the same for every payment date. If the instrument has a floating coupon, the kuponsumma can vary with changes in the reference rate.

Some bonds are zero-coupon instruments and pay no kuponsumma during their life; instead, investors receive the face value at maturity. Other bonds may have irregular or special coupon schedules due to step-up, step-down, or optional redemption features.

The kuponsumma is distinct from the yield or total return of a bond. While the kuponsumma is the fixed cash flow received periodically, yield reflects the overall return considering the purchase price, the coupon payments, and any capital gain or loss at maturity. In practice, investors monitor kuponsummat as part of the coupon schedule and the broader income profile of fixed-income investments.