The coupon rate of a bond equals:

Question

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The coupon rate of a bond is a fixed percentage of its face value, which is the amount that will be paid out upon maturity. It is not necessarily equal to its yield to maturity (A), which takes into account the price paid for the bond and the time value of money. The maturity value (C) is simply the face value of the bond, and the coupon rate is a percentage of this value. The coupon rate is also not necessarily a percentage of the bond's price (D), as the price may be different from the face value.

The Coupon Rate of a Bond Equals