Dictionary of Finance and Investment Terms: stated interest rate
stated interest rate
Banking: rate paid on savings instruments, such as passbook savings accounts and certificates of deposit. The stated interest rate does not take into account any compounding of interest.
Bonds: interest rate stated on a bond coupon. Abond with a 7% coupon has a 7% stated interest rate. This rate is applied to the face value of the bond, normally $1,000, so that bondholders will receive 7% annually for every $1,000 in face value of bonds they own.
