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What is the difference between a coupon rate and an interest rate?

By IndianMoney , 9 months ago

Difference between a coupon rate and an interest rate: 1. The coupon rate is calculated on the face value of the bond which is being invested. 2. The interest rate is calculated considering on the basis of the riskiness of lending the amount to the borrower. 3. The coupon rate is decided by the issuer of the bonds to the purchaser. The interest rate is decided by the lender.

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