The coupon rate is a useful measure of the rate of return on a bond because it takes into account fluctuations in the bond's market price.

Name: The coupon rate is a useful measure of the rate of return on a bond because it takes into account fluctuations in the bond's market price.
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The coupon rate does not account for fluctuations in the bond's market price; it is a fixed rate determined at the issuance of the bond, representing the annual interest payment divided by the bond's face value.

The Coupon Rate Is a Useful Measure of the Rate