Coupon rate

The coupon rate refers to the rate of interest that the bond issuer will pay to whoever buys the bond over the course that it is held.

Hence a coupon rate, because it literally was a coupon in the old days that contained the information.

Generally the coupon rate is used to refer to the interest rate on a loan product, which may include a mortgage.

Related Articles

Limited Liability Company
Commission
Credit Scoring
Devaluation
Merchant Banking

More Financial Words and Vocabulary Explained