Coupon rate
A fixed coupon is usually calculated from the bond’s face value.
Once a bond trades in the market, the coupon amount can stay unchanged even while the price moves.
Yield reflects price
When a bond trades below face value, its yield can be higher than its coupon rate; when it trades above face value, the reverse can be true.
Different yield measures answer different questions, so the definition matters.
Rates and prices
All else equal, existing fixed-rate bond prices tend to fall when market yields rise and rise when market yields fall.
The size of the response depends partly on maturity and duration.
General information only. Investment products can lose value, and terms, fees and regulation can change.