Coupon Payment Calculator

Enter the values in the Coupon Payment Calculator:

Using the Coupon Payment Calculator

Suppose that you want to calculate the coupon payment given the following information:

• Bond face value is 1000
• Annual coupon rate is 6%
• Payments are semiannual

Enter the values in the Coupon Payment Calculator:

Click on the "Calculate Coupon Payment" and you'll get the coupon payment of 30:

Manually Derive the Coupon Payment

The formula to derive the coupon payment:

                                    FV * C * 0.01 
Coupon Payment =           m

Where:

• FV = Bond face value
• C = Annual coupon rate
• m = Number of payments per year

For our example:

• FV = 1000
• C = 6
• m = 2

The coupon payment is therefore 30:

                                    FV * C * 0.01        1000 * 6 * 0.01
Coupon Payment =           m             =               2              =  30       

You may check the Bond Price Calculator to calculate the price of a bond.