Coupon

The interest a bond pays, stated as an annual percentage of its face value and fixed when the bond is issued. Indian government securities and most US bonds pay it in two halves a year; many Indian corporate bonds pay it annually.

A ₹1,000 bond with a 7.4% coupon paid half-yearly pays ₹37 every six months, whatever happens to its price.

Coupon and yield are different numbers. A coupon is set once; the yield moves with the bond's price. A 7.4% coupon bond trading below face value yields more than 7.4%, and the gap is the market saying rates or credit risk have risen since issue. A zero-coupon bond pays nothing until maturity and is sold at a discount instead.

Fixed at issue; the yield does the moving.