How do you find the coupon rate
The Coupon Rate Formula. After you've calculated the total annual coupon payment, divide this amount by the par value of the security and then multiply by 100 to convert this total to a percent. Remember the equation: coupon rate formula = (total annual coupon payment) divided by (par value of the security) x 100 percent. The coupon rate remains fixed over the lifetime of the bond, while the yield to maturity is bound to change. When calculating the yield to maturity, you take into account the coupon rate and any increase or decrease in the price of the bond. For example, if the face value of a bond is $1,000 and its coupon rate is 2%, the interest income equals For example, the rate of a government bond is usually paid once a year, but if it is a U.S. bond the payment is made twice a year. Other bonds may pay interest every three months. In order to calculate the coupon rate formula of a bond, we need to know: the face value of the bond, the annual coupon rate, and the number of periods per annum.