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Basic Question 8 of 15

The coupon rate of a bond is ______.

A. the amount the issuer agrees to repay the bondholder by the maturity date
B. the number of years over which the issuer has promised to meet the conditions of the obligation
C. the interest rate that the issuer agrees to pay each year

User Contributed Comments 5

User Comment
woori coupon rate : the interest rate that the issuer agrees to pay each year
popolistic Coupon Rate is QUOTED as an annual rate but usually PAID semi-annually.
Inaganti6 In india that's all theory nobody really pays back here it's like one way street
UcheSam Since it is US exam, option "C" should have been "the interest that the issuer agrees to pay each semi-annual"
Haoran Coupon rate is semi-rate x 2! @UcheSam
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Edward Liu

Learning Outcome Statements

describe the features of a fixed-income security

CFA® 2024 Level I Curriculum, Volume 4, Module 1.