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 ... 
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 Interest Rate
The interest rate before taking inflation into account. The equation ... 
Nominal Value
The stated value of an issued security. Nominal value in economics ... 
Bond
A debt investment in which an investor loans money to an entity ...

Investing Basics
Explaining the Coupon Rate
Coupon rate is the stated interest rate on a fixed income security. 
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
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. ... 
Investing Basics
What is a "Coupon"?
In the financial world, “coupon” represents the interest rate on a bond. 
Bonds & Fixed Income
Advanced Bond Concepts: Bond Pricing
It is important for prospective bond buyers to know how to determine the price of a bond because it will indicate the yield received should the bond be purchased. In this section, we will run ... 
Bonds & Fixed Income
Simple Math for FixedCoupon Corporate Bonds
A guide to help to understand the simple math behind fixedcoupon corporate bonds. 
Bonds & Fixed Income
Using Excel PV Function to compute Bonds PV
To determine the value of a bond today  for a fixed principal (par value) to be repaid in the future at any predetermined time  we can use an Excel spreadsheet. 
Retirement
Bond Basics: Yield, Price And Other Confusion
Investopedia Explains: Bond yield, Bond price, yield to maturity, the link between price and yield and bond price in the market. 
Bonds & Fixed Income
Risks To Consider Before Investing In Bonds
Make sure you understand the risks associated with bonds before making an investment decision.

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