← Options Glossary

Coupon Rate

The annual rate of interest paid on a fixed income security. For example, an investor holding a $1,000 bond paying interest annually with a coupon rate of 5% would receive $50 per year through maturity ($1,000 x .05 = $50).

This is a definition, not a recommendation. Options carry risk and can expire worthless. See how the desk actually trades at TrueTrader.