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A coupon payment on a bond is a periodic interest payment that the bondholder receives during the time between when the bond is issued and when it matures. Coupons are normally described in terms of the coupon rate, which is calculated by adding the total amount of coupons paid per year and dividing by the bond's face value. For example, if a bond has a face value of $1,000 and a coupon rate of 5%, then it pays total coupons of $50 per year. For the typical bond, this will consist of semi-annual payments of $25 each. The coupon rate is the yield that the bond pays on its issue date; however, this yield can change as the value of the bond changes and thus giving the bond's yield to maturity. All else being equal, bonds having higher coupon rates are therefore more desirable for investors than those having lower coupon rates.

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Hiragana

ひらがな

The rounded, flowing kana. Hiragana writes native Japanese words, grammar endings, and anything without (or alongside) kanji — it's the first script you learn. Each character stands for one syllable.

Example

ねこ — cat