Coupon rate refers to the fixed interest rate printed on the face of bonds, which is usually the ratio of annual interest income to the face value of bonds, also known as nominal yield and face yield. Coupon rate is the interest rate determined when bonds are issued, and interest is generally paid once every six months. Refers to the annual interest rate of the face value of the bonds that the issuer promises to pay to the bondholders.

Coupon rate: refers to the annual interest rate of bonds, which is equivalent to a certain proportion of the face value of bonds. The coupon rate can be fixed (that is, the coupon rate is fixed during the whole duration of bonds, such as Exchange Fund bonds), floating (that is, the coupon rate is set periodically by a reference interest rate, such as the Hong Kong Interbank Offered Rate or the London Interbank Offered Rate plus a certain margin) or zero. Take Exchange Fund bonds as an example. Interest calculated in coupon rate shall be paid once every six months.