The coupon rate of a bond typically equals the yield market rate
Coupon yield is the annual interest rate established when the bond is issued. the overall interest rate earned by an investor who buys a bond at the market price cash flows (from coupons and principal repayment) equals the price of the bond. to be reinvested, but computations of YTM generally make that assumption. Generally, the issuer sets the price and the yield of the bond so that it will sell The present value is calculated using the prevailing market interest rate for the term value, which is equal to the bond's value using the coupon rate of the bond.