# Coupon rate

- Canonical URL: https://www.gerhardmerk.de/coupon-rate
- Post ID: 592019
- Modified: 2023-07-25T21:01:11+00:00
- Language: en

## Definition

Unless otherwise defined, the coupon rate for a bond is the future interest payments during the remaining running time plus the redemption payment at maturity. - If the coupon rate calculated in this way - say: four percent - is lower than the interest rate on corresponding - same risk, same tax burden, same level of information - alternative investments - in the example: five percent - many investors will sell the lower-interest bond. The price for this bond will fall as a result, and the effective interest rate will thus increase for new buyers. - See information efficiency, strict, premium bond. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

- Generator: Merk Knowledge 1.1.1