A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a year divided by the face value of the bond in question). It is also … See more
For example, a $1,000 bond with a coupon of 7% pays $70 a year. Typically these interestpayments will be semiannual, meaning the investor … See more
The term "coupon" originally refers to actual detachable coupons affixed to bond certificates. Bonds with coupons, known as coupon bonds or … See more
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