# Municipal bond coupon payments

##### *2019-08-21 11:34*

A coupon payment on a bond is the annual interest payment that the bondholder receives from the bond's issue date until it matures. Coupons are normally described in terms of the coupon rate, which is calculated by adding the sum of coupons paid per year and dividing it by the bond's face value. For example, if a bond has a face value of 1, 000 and a couponCoupon rate or nominal yield annual payments face value of the bond Current yield annual payments market value of the bond The current yield is used to calculate other metrics, such as the yield to maturity and the yield to worst. municipal bond coupon payments

However, zerocoupon municipal bonds are different: they offer no periodic interest payments, or coupon, as their name suggests. Instead, at maturity, the zerocoupon municipal bond investor receives a single payment comprising the principal invested plus the interest earned, compounded semiannually, at the stated yield.