Coupon Rate: Definition, Formula & Calculation


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question 1 of 3

What is a coupon rate?

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1. In the formula C = i / p, what does the p represent?

2. Most bonds pay interest:

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About This Quiz & Worksheet

This quiz and worksheet can help determine your understanding of the coupon rate, the annualized interest divided by the initial loan amount. You will be quizzed on terms like par value and maturity.

Quiz & Worksheet Goals

This quiz and worksheet can help determine your knowledge of:

  • Definition of coupon rate
  • Finding the par value
  • Characteristics of bonds
  • Calculating the coupon rate

Skills Practiced

  • Reading comprehension - ensure that you can draw the most important information from the related coupon rate lesson
  • Information recall - access the knowledge you have gained regarding bonds
  • Knowledge application - use your knowledge to answer questions about par value

Additional Learning

To learn more about the coupon rate, review the lesson Coupon Rate: Definition, Formula & Calculation. This lesson covers the following objectives:

  • Calculate the coupon rate
  • Understand traits of bonds
  • Find the par value
  • Define maturity