Coupon Rate Calculator

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Choose whether to solve for the coupon rate (enter the periodic payment) or solve for the periodic payment (enter the coupon rate).
The principal amount printed on the bond, repaid to the holder at maturity. Also called par value or nominal value.
USD
The cash amount paid to the bondholder each period. For a semi-annual bond paying $25 twice a year, enter 25.
USD
How many coupon payments are made each calendar year. US Treasury notes and most corporate bonds pay semi-annually.
Used to build the coupon payment schedule. Does not affect the coupon rate or periodic payment calculation.
years
Annual coupon rateInvestment-grade range
0.05%

Annual interest rate as a percentage of face value

Annual coupon payment50USD
Payment per period25USD
Total coupon payments20
Total interest earned500USD
Annual coupon (USD)50
Total interest over life (USD)500

Coupon rate: 5.0000% per year.

  • The bond pays 50.00 USD per year in interest, distributed twice a year as payments of 25.00 USD.
  • Over the bond's life, total interest received amounts to 500.00 USD, equal to 50.0% of the face value.
  • A coupon rate in the 2-6% band is typical of investment-grade corporate bonds and government notes. It balances income with manageable credit risk.

Next stepThe coupon rate is fixed at issuance; to compare bonds on equal footing, calculate the yield to maturity (YTM), which accounts for the purchase price relative to par.

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