Reading issue terms: when the issue price is par, the coupon rate and the yield are the sameWhen are the coupon rate and the yield the same number
On November 2, 2026, the Ministry of Finance announced that a government guarantee will be attached to the 57th Japan Housing Finance Agency bond (a green bond), which the agency plans to issue in November. The published terms are an issue amount of JPY 15 billion, a coupon rate of 3.210 percent, an issue price of JPY 100.00 per JPY 100 of face value, a yield to subscribers of 3.210 percent, an issue date of November 16, 2026 and a maturity date of November 16, 2038 (Reiwa 20). The coupon rate and the yield are the same figure because the issue price is exactly par.
Key points
- The published terms are an issue amount of JPY 15 billion, a coupon rate of 3.210 percent, an issue price of JPY 100.00 per JPY 100 of face value and a yield to subscribers of 3.210 percent
- The issue date is November 16, 2026 and the maturity date is November 16, 2038 (Reiwa 20)
- The coupon rate is the interest received each year as a proportion of the face value; the yield to subscribers is the annual return as a proportion of the price actually paid
- Because the issue price is exactly par at JPY 100.00, the denominator of the two proportions is the same, so the two figures coincide (if a bond is issued below par, the yield is higher than the coupon rate)
- The government guarantee was granted on November 2, 2026, and it covers the 57th bond (green bond) that the agency plans to issue in November
What to do in practice
- When reading a bond announcement, look at the coupon rate, the issue price and the yield together rather than at the coupon rate alone
- If the coupon rate and the yield differ, check whether the issue price is away from the face value
When a government or a company borrows a large sum, it sells certificates called bonds. The certificate says how much interest will be paid each year for every JPY 100 of face value, and that proportion is called the coupon rate. The proportion of annual gain seen from the buyer's side is called the yield. For the housing finance agency bond announced on November 2, both were 3.210 percent, the same. That is because the certificate is sold at exactly its face value of JPY 100.
- Interest received in a year
- JPY 3.210
- Divided by the price paid (issue price)
- JPY 100
- Rate of gain per year
- 3.210 percent
Points
- The coupon rate is how much is received each year for every JPY 100 of face value
- The yield is how much is gained each year compared with the price you actually paid
- If you buy at exactly the face value of JPY 100, the denominator is the same, so the two figures match
What the words mean
- face value
- the standard amount printed on a certificate; it is the basis of the amount repaid at maturity
- bond
- a certificate issued as proof that money has been borrowed; it is repaid with interest at maturity
- Ministry of Finance: Ministry of Finance: Government guarantee for the 57th Japan Housing Finance Agency bond (green bond)
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This article summarizes and explains materials published by government agencies and is not advice on any individual case. Rules can change, so for actual procedures and decisions always check the latest original materials and consult professionals such as tax accountants or labor and social security attorneys. English, Simplified Chinese and Traditional Chinese versions are translations prepared from the Japanese articles for convenience. If anything differs, the Japanese text and the original source take precedence.