What is the Coupon Rate?
The Coupon Rate is the amount of gross annual interest or accrued interest paid to the holder.
To explain: You have a holding of £1,000 nominal of 6.5% Treasury stock 2006. What amount of interest or income will you receive?
The stock will pay you interest at 6.5%. This is the interest or coupon rate. It is usually paid half yearly and in our example this would be £32.50 gross of tax paid twice per year.