<Table> <Tr> <Td> </Td> <Td> This article does not cite any sources . Please help improve this article by adding citations to reliable sources . Unsourced material may be challenged and removed . (December 2009) (Learn how and when to remove this template message) </Td> </Tr> </Table> <Tr> <Td> </Td> <Td> This article does not cite any sources . Please help improve this article by adding citations to reliable sources . Unsourced material may be challenged and removed . (December 2009) (Learn how and when to remove this template message) </Td> </Tr> <P> In finance, a fixed rate bond is a type of debt instrument bond with a fixed coupon (interest) rate, as opposed to a floating rate note . A fixed rate bond is a long term debt paper that carries a predetermined interest rate . The interest rate is known as coupon rate and interest is payable at specified dates before bond maturity . Due to the fixed coupon, the market value of a fixed - rate bond is susceptible to fluctuations in interest rates, and therefore has a significant amount of interest rate risk . That being said, the fixed - rate bond, although a conservative investment, is highly susceptible to a loss in value due to inflation . The fixed - rate bond's long maturity schedule and predetermined coupon rate offers an investor a solidified return, while leaving the individual exposed to a rise in the consumer price index and overall decrease in their purchasing power . </P> <P> The coupon rate attached to the fixed - rate bond is payable at specified dates before the bond reaches maturity; the coupon rate and the fixed - payments are delivered periodically to the investor at a percentage rate of the bond's face value . Due to a fixed - rate bond's lengthy maturity date, these payments are typically small and as stated before are not tied into interest rates . </P>

What is the interest rate on a bond known as