kuponimäär

Kuponimäär is a Finnish term that translates to "coupon rate" in English. It refers to the nominal interest rate that a bond or other debt instrument pays to its holder. This rate is fixed at the time the bond is issued and remains the same throughout the life of the bond. The coupon rate is expressed as a percentage of the bond's face value (also known as par value).

For example, if a bond has a face value of $1,000 and a coupon rate of 5%, the bondholder will receive $50 in interest payments annually. These payments are typically made semi-annually or annually. The coupon rate is a key factor in determining a bond's price in the secondary market. If market interest rates rise above the coupon rate, the bond's price will likely fall, and vice versa.

It's important to distinguish the coupon rate from the bond's yield, which is the actual return an investor receives. The yield can differ from the coupon rate due to factors such as the bond's purchase price, the time remaining until maturity, and prevailing market conditions. Bonds that pay regular interest payments are often referred to as "coupon bonds." Conversely, bonds that do not pay periodic interest but are sold at a discount to their face value are known as "zero-coupon bonds." The term "kuponimäär" specifically denotes the stated interest rate on the coupon payments.