Question

A percentage of the bond's par value, the _____ is the interest paid to bondholders. coupon rate funding rate dividend p/e ratio

Answer 1

A percentage of the bond's par value, the coupon rate is the interest paid to bondholders.

The coupon rate is the mount of money paid to the bondholder from the date the bond was issued until it matures. To find the coupon rate you add the coupons paid per year up and then divide them by the bond's face value.