Question: What is the difference between the interest rate of corporate bonds and that of coupon rate? Thank you, and God bless you.

Coupon rate refers to the interest rate indicated on the bond, and the ratio of one-year interest to par value is the percentage of the total interest payable to bondholders by the bond divided by the total par value of the bond. The level of coupon rate directly affects the financing cost of the securities issuer and the investment income of investors, which is generally determined by the securities issuer according to the bond itself and the analysis of the market situation. The interest payment method of bonds refers to the way that issuers pay interest to bondholders in batches within the validity period of bonds, and the interest payment method of bonds also affects the income of investors.

Fixed bonds in coupon rate usually pay interest once a year or half a year.

Corporate bonds must indicate the coupon rate of the bonds. To some extent, the level of coupon rate not only shows the economic strength and potential of corporate bond issuers, but also is one of the factors that can attract enough buyers.

The lower the coupon rate of bonds, the greater the volatility of bond prices. When the market interest rate rises, the lower bond prices in coupon rate drop rapidly. However, when the market interest rate falls, they have great appreciation potential. If the market price of interest-bearing bonds is equal to its face value, yield to maturity is equal to its coupon rate; If the market price of a bond is lower than its face value (when the bond is sold at a discount), the yield to maturity of the bond is higher than that of coupon rate. Conversely, if the market price of a bond is higher than its face value (when the bond is sold at a premium), the yield to maturity of the bond is lower than that of coupon rate.

In short, the bond price and the relationship between yield to maturity and coupon rate can be summarized as follows:

Coupon rate par value

Coupon rate means that if you can deposit your money for a specified period, such as a three-year national debt, you must deposit it for three years before you can pay interest at the deposit rate stipulated by the Ministry of Finance. The usual "coupon rate" refers to the interest rate on the certificate of deposit, which is 65,438+0.9xx% in coupon rate after three years of deposit.

For example, if an investor holds bonds with a face value of 65,438+0,000 yuan, and coupon rate pays interest on June 65,438+0 and February 65,438+0 every year, he will get interest of 237.50 yuan in these two days. If the bond is non-transferable, the interest will be deposited into the investor's bank account like a dividend.

Special note: coupon rate is different from the real interest rate.