Bond Coupon Payment Calculator
Work out the coupon paid per period and the total annual coupon from a bond's face value, coupon rate and frequency.
Input Data
Results
At a glance:Annual coupon = face value x coupon rate; coupon per period = annual coupon / frequency. Example: face value HK$100, coupon 5%, semi-annual gives an annual coupon of HK$5 and HK$2.50 per period. WARNING: The coupon rate is based on face value, not the market price — current yield (using price) can differ. Coupons are contractual, but total return also depends on price changes and reinvestment.
Formula
Annual coupon = face value × coupon rate.
Coupon per period = annual coupon / frequency.
$$\\text{Annual coupon} = F \\times c$$$$\\text{Periodic coupon} = \\dfrac{F \\times c}{m}$$How to Use
- Enter the bond's face value and annual coupon rate.
- Enter the number of coupon payments per year.
- View the coupon per period and the annual coupon.
FAQ
What is a coupon payment?
It is the periodic interest the issuer pays on a bond, set as a percentage of face value. A 5% coupon on HK$100 face value pays HK$5 a year, split by the payment frequency.
Does the coupon depend on the market price?
No. The coupon is fixed by the coupon rate on face value. Only the current yield (coupon / price) changes with the market price. A bond bought below par shows a higher current yield than its coupon rate.
Why does frequency matter?
Frequency splits the annual coupon into periods. Semi-annual means two payments a year, which also lets you reinvest coupons sooner — a small benefit not captured by the coupon amount alone.
Related Tools
References
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.