Coupon rate is the fixed interest payment a bondholder receives annually, based on the bond’s face value. For example, a bond with a 9.65% coupon rate pays ₹96.50 annually for each ₹1,000 face value.
Yield, on the other hand, represents the actual return you earn based on the price you pay for the bond. If you buy the bond at a discount (less than face value), your yield will be higher than the coupon rate because you’re receiving the same interest payment but paid less upfront.