Coupon rate and nominal interest rate are both used to describe the rate of interest to be paid on a bond.

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Both coupon rate and nominal interest rate are terms used to refer to the rate of interest that a bond issuer promises to pay to its bondholders. The coupon rate is the fixed rate of interest paid annually or semi-annually on a bond, expressed as a percentage of the bond's face value. The nominal interest rate is the stated rate of interest on a bond, which does not take into account factors such as inflation or compounding. Both terms are often used interchangeably, but they can have slightly different meanings depending on the context.

Coupon Rate and Nominal Interest Rate Are Both Used to Describe