A bond's interest rate is termed its ________.

Question

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The coupon rate or simply the coupon is the fixed interest rate paid on a bond annually or semi-annually, expressed as a percentage of the bond's face value. This distinguishes a bond from other debt instruments such as bills and notes which do not have a fixed interest rate. A bond's rating refers to the creditworthiness of the entity issuing the bond, while face value and par value refer to the amount of money the bond promises to repay at maturity. The maturity date refers to the specific date at which the bond will be repaid.

A Bond's Interest Rate Is Termed Its ________