Coupon Payment Calculator

Bond Coupon Payment Calculator

Face Value (Par Value)

$

The nominal value of the bond

Annual Coupon Rate

%

Annual interest rate paid by the bond

Payment Frequency

How often coupons are paid

Number of Payments

Total number of coupon payments to calculate

Coupon Payment Results

Coupon Payment

Annual Interest

Total per year

Total Interest

Effective Rate

Per payment period

Payment Schedule

Payment #	Coupon Payment	Cumulative Interest	Remaining Face Value

How Coupon Payments Work

Formula

Coupon Payment = Face Value × (Coupon Rate / Payment Frequency)

Annual Interest = Face Value × Coupon Rate

Total Interest = Coupon Payment × Number of Payments

Key Terms

Face Value: The par value or principal amount of the bond

Coupon Rate: The annual interest rate paid by the bond issuer

Payment Frequency: How many times per year coupons are paid

Coupon Payment: The actual dollar amount received each payment period

Example

Bond Details:

• Face Value: $1,000

• Coupon Rate: 6% annual

• Semi-annual payments (2 per year)

Calculation:

Coupon Payment = $1,000 × (6% ÷ 2) = $30

Annual Interest = $1,000 × 6% = $60

Tips

• Most corporate bonds pay semi-annually
• Government bonds may pay annually or semi-annually
• Higher frequency means smaller individual payments
• Total annual interest remains the same regardless of frequency
• Coupon payments are separate from principal repayment