Coupon Rate Calculator

Here is a simple online calculator to calculate the coupon percentage rate using the face value and coupon payment value of bonds. The term coupon refers to a value which is affixed to bond certificates and are detachable from the bonds. Each bond has a face value, and a certain percentage of this face value (eg, 3 %) is paid as a coupon value for that bond.

Coupon Percentage Rate Calculation

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Here is a simple online calculator to calculate the coupon percentage rate using the face value and coupon payment value of bonds. The term coupon refers to a value which is affixed to bond certificates and are detachable from the bonds. Each bond has a face value, and a certain percentage of this face value (eg, 3 %) is paid as a coupon value for that bond.

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Formula:

Coupon Rate = (Coupon Payment x No of Payment) / Face Value Note: n = 1 (If Coupon amount paid Annual) n = 2 (If Coupon amount paid Semi-Annual)

Coupon percentage rate is also called as the nominal yield. In other words, it is the yield the bond paid on its issue date. Bonds with higher coupon rates are preferred by the investors than those with lower rates.

Example

A bond issued with a face value of 2000 $ that pays $25 coupon payments annually will have a coupon rate of

     = (25 x 1) / 2000
     = = 1.25 % Therefore, CR value is 1.25%


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