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.

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. ... 
Short Coupon
A payment made on a bond within a shorter time interval than ... 
Bond
A debt investment in which an investor loans money to an entity ... 
ZeroCoupon Bond
A debt security that doesn't pay interest (a coupon) but is traded ... 
Face Value
The nominal value or dollar value of a security stated by the ...

Investing
Explaining the Coupon Rate
Coupon rate is the stated interest rate on a fixed income security. 
Investing
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. 
Markets
Comparing Yield To Maturity And The Coupon Rate
Investors base investing decisions and strategies on yield to maturity more so than coupon rates. 
Investing
What Does Nominal Mean?
Nominal refers to an unadjusted value or change in value. 
Markets
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. 
Investing
What is a Premium Bond?
A premium bond is one that trades above its face or nominal amount. 
Markets
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. ... 
Markets
Advanced Bond Concepts: Bond Type Specifics
Before getting to the allimportant subject of bond pricing, we must first understand the many different characteristics bonds can have. When it comes down to it, a bond is simply a contract ... 
Markets
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. 
Managing Wealth
5 Basic Things To Know About Bonds
Learn these basic terms to breakdown this seemingly complex investment area.

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