What is a 'Nominal Yield'
A nominal yield is the coupon rate on a bond. The nominal yield is the interest rate (to par value) that the bond issuer promises to pay bond purchasers. This rate is fixed and applies to the life of the bond. Nominal yield is sometimes referred to as nominal rate, coupon yield or coupon rate.
BREAKING DOWN 'Nominal Yield'
The nominal rate does not always represent the overall return. Buyers who pay a premium (more than the coupon price) for a given bond will receive a lower actual rate of return than the nominal rate, while investors who pay a discount (less than the coupon price) will receive a higher actual rate of return. It's also worth noting that bonds with high coupon rates tend to get called first (when callable), as they represent the issuer's greatest liability relative to bonds with lower yields.

Coupon
The annual interest rate paid on a bond, expressed as a percentage ... 
Effective Yield
The yield of a bond, assuming that you reinvest the coupon (interest ... 
Coupon Rate
The yield paid by a fixed income security. A fixed income security's ... 
Current Coupon Bond
A bond with a coupon rate that is within 0.5\% of the current ... 
Required Yield
The return a bond must offer in order to be a worthwhile investment. ... 
Nominal Rate Of Return
The amount of money generated by an investment before expenses ...

Professionals
Bond Yields
A bond’s yield is the investor’s return for holding the bond. Many factors affect the yield that an investor will receive from a bond such as: Current interest rates Term of the bond ... 
Professionals
Bond Yields
FINRA/NASAA Series 65: Section 8 Bond Yields. In this section yield to maturity, current yield, yield to call and real interest rate. 
Investing Basics
Explaining the Coupon Rate
Coupon rate is the stated interest rate on a fixed income security. 
Economics
Understanding Interest Rates: Nominal, Real And Effective
Interest rates can be broken down into several subcategories that incorporate various factors such as inflation. Smart investors know to look beyond the nominal or coupon rate of a bond or loan ... 
Investing Basics
What is a Nominal Value?
The nominal value of a security, such as a stock or bond, remains fixed for the duration of its life. 
Investing Basics
What Does Nominal Mean?
Nominal refers to an unadjusted value or change in value. 
Bonds & Fixed Income
Comparing Yield To Maturity And The Coupon Rate
Investors base investing decisions and strategies on yield to maturity more so than coupon rates. 
Investing Basics
What is a Premium Bond?
A premium bond is one that trades above its face or nominal amount. 
Investing
Understanding the Different Types of Bond Yields
Any investor, private or institutional, should be aware of the diverse types and calculations of bond yields before an actual investment. 
Bonds & Fixed Income
Advanced Bond Concepts: Yield and Bond Price
In the last section of this tutorial, we touched on the concept of required yield. In this section we'll explain what this means and take a closer look into how various yields are calculated. ...

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