Learn what the stated annual interest rate is and how to calculate it without compounding, plus how it compares to the ...

The bonds that companies and governments sell to borrow money pay a fixed amount of interest each year called the coupon rate. Each bond also has a face (or par) value. Bonds have a specified lifetime ...

Carol M. Kopp edits features on a wide range of subjects for Investopedia, including investing, personal finance, retirement planning, taxes, business management, and career development. Betsy began ...

Whether effective and nominal rates can ever be the same depends on whether interest calculations involve simple or compound interest. While in a simple interest calculation effective and nominal ...

The coupon rate a company pays on a bond is the most obvious cost of debt financing, but it isn't the only cost of financing. The price at which a company sells its bonds -- and the resulting premium ...