The rate that is computed by dividing the annual interest payment by the face value of a bond is called the:

A) Discount rate.
B) Yield to maturity.
C) Coupon rate.
D) Yield to call.
E) Market rate.

Coupon Rate

The yearly interest rate that a bond yields, represented as a percentage of its nominal value.

Face Value

The nominal or dollar value printed on a bond or stock certificate, representing the amount due at maturity or the value of a share.

Annual Interest

The amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed.