smartasset.com › investing › bond-coupon-rateWhat Is Coupon Rate and How Do You Calculate It? Dec 03, 2019 · Every six months it pays the holder $50. To calculate the bond coupon rate we add the total annual payments then divide that by the bond’s par value: ($50 + $50) = $100. $100 / $1,000 = 0.10. The bond’s coupon rate is 10 percent. This is the portion of its value that it repays investors every year.
The coupon rate of a bond is equal to
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