coupon rate
The specific interest rate for a coupon bond. — Also termed coupon interest rate. See coupon bond under BOND(3).
Search Results for: coupon rate
coupon
coupon (koo-pon). An interest or dividend certificate that is attached to another instrument, such as a bond, and that may be detached and separately presented for payment of a definite sum at a specified time. — Also termed interest coupon.
nominal rate
The interest rate stated in a loan agreement or on a bond, with no adjustment made for inflation. — Also termed coupon rate; face rate; stated rate; stated interest rate.
inverse floating rate note
A note structured in such a way that its interest rate moves in the opposite direction from the underlying index (such as the London Interbank Offer Rate). • Many such notes are risky investments because if interest rates rise, the securities lose their value and their coupon earnings fall. — Also termed inverse floater. [Cases:
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effective rate
The actual annual interest rate, which incorporates compounding when calculating interest, rather than the stated rate or coupon rate.
bond table
bond table. A schedule used in determining a bond’s current value by its coupon rate, its time to maturity, and its effective yield if held to maturity.
blue list
Blue List. Securities. A daily listing (on blue paper) of secondary-market offerings of municipal bonds. “Municipal bonds available for resale in the secondary market are listed by state in The Blue List, along with such information as the number of bonds offered, issuer, maturity date, coupon rate, price, and dealer making the offering. Ratings are
strip
strip, n. 1. The act of separating and selling a bond’s coupons and corpus separately. 2. The act of a tenant who, holding less than the entire fee in land, spoils or unlawfully takes something from the land. [Cases: Landlord and Tenant 55(2). C.J.S. Landlord and Tenant § 261.]
yield
yield, n. Profit expressed as a percentage of the investment. — Also termed yield on investment; return. See RATE OF RETURN. coupon yield. The annual interest paid on a security (esp. a bond) divided by the security’s par value. — Also termed nominal yield. current yield. The annual interest paid on a security (esp. a