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This is particularly attributable to the capital inadequacy of the protection sellers. Suppose you bought a bond of face value Rs 1, and the coupon rate is 10 per cent.
How could we improve this response? What's the Difference? Popular Now. But, since you bought the bond at Rs 2,, the rate of interest this time would only be 5 per cent Rs of Rs 2, My Saved Definitions Sign in Sign up. An Overview A bond's coupon rate is the rate of interest it pays annually, while its yield is the rate of return it generates.