<P> In finance , a fixed rate bond is a type of debt instrument bond with a fixed coupon ( interest ) rate , as opposed to a floating rate note . A fixed rate bond is a long term debt paper that carries a predetermined interest rate . The interest rate is known as coupon rate and interest is payable at specified dates before bond maturity . Due to the fixed coupon , the market value of a fixed - rate bond is susceptible to fluctuations in interest rates , and therefore has a significant amount of interest rate risk . That being said , the fixed - rate bond , although a conservative investment , is highly susceptible to a loss in value due to inflation . The fixed - rate bond 's long maturity schedule and predetermined coupon rate offers an investor a solidified return , while leaving the individual exposed to a rise in the consumer price index and overall decrease in their purchasing power . </P>
<P> In finance , a fixed rate bond is a type of debt instrument bond with a fixed coupon ( interest ) rate , as opposed to a floating rate note . A fixed rate bond is a long term debt paper that carries a predetermined interest rate . The interest rate is known as coupon rate and interest is payable at specified dates before bond maturity . Due to the fixed coupon , the market value of a fixed - rate bond is susceptible to fluctuations in interest rates , and therefore has a significant amount of interest rate risk . That being said , the fixed - rate bond , although a conservative investment , is highly susceptible to a loss in value due to inflation . The fixed - rate bond 's long maturity schedule and predetermined coupon rate offers an investor a solidified return , while leaving the individual exposed to a rise in the consumer price index and overall decrease in their purchasing power . </P>
what is the interest rate on a bond known as
what is the interest rate on a bond known as
coupon rate
coupon rate