Nominal Yield: Meaning Nominal Yield, also known as Nominal rate or Coupon yield, is the interest rate that the bond purchaser receives from the bond issuer. In other words, it is a fixed coupon rate which the bond issuer promises to pay to the bond subscriber for the whole lifetime of bonds. Suppose the Bonds have a tenure of 5 years carries interest payment every year @6% per annum. Hence, a Coupon yield of @6% will be provided to the bondholders for a period of 5 years. For the...
