A »The coupon rate of a bond is the annual interest payment made by the issuer based on the bond's face value, while the yield to maturity (YTM) is the total return anticipated if the bond is held until it matures. For example, a bond with a $1,000 face value and a 5% coupon pays $50 annually, but if purchased at a discount, the YTM could be higher, reflecting the market price.

A »A bond's coupon rate is the fixed interest rate it pays periodically, while yield to maturity (YTM) is the total return an investor can expect if they hold the bond until maturity, considering its current price, coupon payments, and face value. YTM reflects the bond's overall return, whereas the coupon rate is just the interest paid.