Nominal yield

The coupon rate (or nominal rate or nominal yield) of a fixed income security is the (annualized) amount of the coupon, which is a fixed percentage of the par value. Unlike current yield, it does not vary with the market price of the security. The coupon rate is typically stated in the name of the bond, such as 'US Treasury Bond 6.25%'. The coupon rate (or nominal rate or nominal yield) of a fixed income security is the (annualized) amount of the coupon, which is a fixed percentage of the par value. Unlike current yield, it does not vary with the market price of the security. The coupon rate is typically stated in the name of the bond, such as 'US Treasury Bond 6.25%'.