a printed form, often distributed as part of an advertisement, entitling the bearer to purchase a specific item of merchandise at a discount; or, a similar form which may be submitted to the issuer to obtain goods or information. Such coupons may be issued by the manufacturer (manufacturer's coupon) or by a retail establishment; in the latter case they may then be redeemed only at that particular retail store.
The interest that the borrower must pay to the lender usually expressed as a percentage of the par value of the debt instrument. The term also refers to small detachable claims attached to some bond certificates which entitle the bearer to the stated semi-annual interest when submitted on or after the stated payment date.
Predetermined amount of cash payed as an interest during the life of a bond.
The rate of interest payable on a bond. For example a bond with a 10% coupon and a nominal value of #100 will pay annual interest of #10 in total, regardless of the price at which the bond is trading in the market.
The coupon is a regular payment received by a bondholder over the lifetime of a bond. If the coupon is fixed the amount (as a %) of the principal on which it is calculated will remain the same throughout the lifetime of the bond. For example, a bond with a face value of $1000 and a fixed coupon of 10% paying annually, will pay $100 per annum for the term to maturity.
The interest rate that a bond issuer promises to pay the bondholder until the bond matures.
The annual rate of interest which the borrower promises to pay the bondholder; the face rate of a security.
A slip of paper representing a monetary value. Often used with reference to the interest payable on gilts, because the coupon attached to the certificate represents annual interest, and can be encashed.
The rate of interest on a bond, expressed as a percentage of par. The coupon is established at the time of issue and is determined by the then prevailing level of interest rates in the marketplace.
The fixed rate at which interest is paid on a bond.
A coupon is a single interest payment on a interest paying security such as a bond.... more on: Coupon
The detachable part of a certificate exchangeable for dividend payments.
A bond 's semiannual interest payment; the detachable part of a bearer bond that identifies amount and payment date of each interest payment.
Refers to the physical piece of paper that can be attached to a bond that pays the interest. When these coupons are removed from bonds they create strip bonds and coupons. People can purchase the coupons as an investment to receive a set amount of income for a specific amount of time.
Certificate attached to a bond that represents interest payments that will be made on certain dates.
A coupon is a dated piece of paper attached to a bond. The coupon has to be surrendered (given back) to get the interest or dividend on the bond.
A separable part of a certificate, ticket, advertisement etc., entitling the holder to something.
certificate attached to a bond, representing an obligation to pay interest on the bond. Not to be confused with the yield, which varies as interest rates move. (See also Zero Coupon Bonds).
Interest voucher generally attached to bonds and exchangeable for cash on its due date.
The interest rate on a fixed-interest security.
(1) On bearer stocks, is the piece of paper detachable and exchanged for dividends. (2) On a bond, denotes the amount of interest received, expressed as a percentage of the par value.
The annual or semi-annual interest paid on a debt security expressed as a percentage of the face value. A coupon is fixed for the life of the security. It also describes the detachable certificate entitling the bearer to payment of the interest. A security which pays interest at predetermined intervals is known as coupon bearing.
(a) The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value. (b) A certificate attached to a bond evidencing interest due on a payment date.
one of a series of promissory notes of consecutive maturities attached to a bond or other debt certificate; they are intended to be presented on their respective due dates for payment of interest.
The interest rate on a fixed income security, determined upon issuance, and expressed as a percentage of par. Also, the term for each interest payment made to the bondholder. see also short coupon.
An attachment to bearer bonds representing the interest payments.
The term used to describe the rate of interest on a bond. Yield is what investors actually receive.
The annual rate of interest to be paid on a bond, most often paid in semi-annual installments and expressed as a percentage of par
The interest rate stated on a fixed income security.
That feature on a bond that defines the annual interest income that the issuer will pay the bondholder.
a negotiable certificate that can be detached and redeemed as needed
a certificate with a stated value if it is used when purchasing a specific product
a certificate with a stated value to be used when purchasing a specific product
a detachable part of a security that bears the interest payment date and the amount due
a discount or offer that must be redeemed at an advertiser's web site
an agreement of the Corporation to pay a stipulated amount of money as the interest, which will be due upon the bond at a specified date
a small certificate which entitles the holder to some payment, gift or benefit
The fixed interest payments you receive from your investment. The coupon rate is set when the issuer first issues the securities.
Interest rate payable on bonds, whether bearer or registered. It also refers to the detachable portion of the certificate entitling the bearer to payment of the interest.
removable portion of bond certificate which the holder gives to the issuer for periodic payment of interest due the holder for the life of the bond
A certificate that accompanies a bond that indicates the amount of interest it pays and the date it is due. The interest is expressed as an annual percentage of the par value of the bond, and may be paid monthly, quarterly, semi-annually, annually, or at maturity. The certificate must be presented for payment either physically or electronically.
The rate of interest payable on a bond (sometimes also used to mean the fixed rate on a swap).
The periodic (annual, semiannual) payment, as a proportion of principal.
The amount of interest which a bond pays on its nominal value, rather than its yield, which is the rate of interest the bond pays based on the market price of the bond. The coupon refers to the fact that bonds historically bonds have had detachable interest payment coupons attached to them.
Interest coupons are attached to a bearer bond when issued. The owner clips the coupon at the date stated on the coupon and presents it to the issuer's agent for payment. Coupons can be cashed by the bearer, so they must be guarded as carefully as cash.
The annual rate of interest that a borrower promised to pay the bond holder. A certificate attached to a bond that must be surrendered in order to collect the interest due on a specified date.
(1) On bearer stocks, the detachable part of the hide behind nominee status. Certificate exchangeable for dividends
The current annual rate at which interest is passed through monthly to a holder of a PC, based on a 360-day year of twelve 30-day months.
The feature on a bond that defines the amount of annual interest income.
Interest or dividend certificate attached to a security, which entitles the holder to receive the income due or to exercise rights.
The percentage rate of interest payable on a bond. The figure shown is always the pre-tax (gross) rate.
Annual interest paid on gilt holdings, usually in two equal, semi-annual instalments. Expressed as a percentage of £100 nominal.
States the rate interest will be paid on a bond, usually semiannually.
The stated interest rate on a bond at time for issue. For example, a $1,000 bond with a coupon of 4% will pay $40 a year.
The annual rate of interest on the face value of a bond that a bond's issue promised to pay the bondholder.
A coupon is the stated interest rate for a bond. Most bonds have a fixed coupon that does not change during the life of the bond. Most bonds have two coupon payments per year. For example, a bond with a 5.0% coupon will pay $25 twice per year, for total interest of $50 which is 5.0% of the face value of the bond (almost all bonds have a face value of $1,000).
The annual interest paid on a debt security. A coupon is usually stated in terms of the rate paid on a bond's face value. For example, a 9% coupon, $1,000 principal amount bond would pay its owner $90 in interest annually. A coupon is set at the time a security is issued and, for most bonds, stays the same until maturity. The detachable part of a coupon bond that must be presented for payment every six months in order to receive interest.--See also Clip; Coupon Clipping.
The regular payment made on fixed income securities.
The periodic cash flow due on a bond instrument. It is normal to express the coupon in annual terms, irrespective of the number of payment per year eg quarterly. In some instruments the coupon is detachable and can be traded separately to the underlying bond.
Annual interest rate associated with capital market bond issues.
Is the contractual rate of interest on a credit instrument.
A mini-certificate actually attached to a bond certificate which represents an actual interest payment. The coupon becomes negotiable on the date the interest is due and usually represents the six month interest payment on the face value of the bond certificate. The term "coupon" is sometimes used as a slang reference to the interest rate paid on a debt instrument, i.e. the coupon of the new Government of Canada March 2015 is 8.75%. This means the interest rate is 8.75% per annum on the face value of the bond.
the interest payment made on a bond or a yield certificate.
the coupon on U.S. Government securities expressed as an annual percentage of face value, is the interest rate the U.S. Government promises to pay to the holder on an ongoing basis until maturity.
A certificate that is detachable from a bond to be exchanged for dividends, interest payments, etc. Also used to mean the rate of interest payable on a fixed-interest security.
A Fixed dollar amount, payable per annum, stated as a percentage of principal value, usually payable in semiannual installments.
The fixed percentage paid out on a fixed-income security on an annual basis.
The interest payment made on a bond, usually paid twice a year. A $1,000 bond paying $65 per year has a $65 coupon, or a coupon rate of 6.5%. Bonds that pay no interest are said to have a "zero coupon." Also called the coupon rate.
The nominal interest, usually paid on a regular basis and expressed in terms of percentage of the face value, which bondholders have the right to receive. Coupons can be fixed (when a specific amount is set at the time of bond issuance) or floating (when the amount is related to a specific variable, in a relation established when the bond is issued). All outstanding Bonos and Obligaciones currently pay fixed annual coupons.
(1) A colloquial term for a bond's interest rate. See: COUPON RATE; INTEREST RATE.(2) Historically, a detachable part of a certificated security that evidences interest due. See: CERTIFICATED SECURITY; COUPON BOND.
The annual interest rate paid by the bond issuer to the bondholder.
This is a regular payment received by the bondholder over the lifetime of the bond. The coupon rate is expressed as a percentage of the face value of the bond.
The rate of interest payable on a fixed-interest security, traditionally a detachable coupon.
the fixed amount that a borrower agrees to pay to the bondholder each year.
The periodic, fixed interest payable on a bond.
Detachable portion of a bond certificate entitling the holder to receive a specified amount in interest when detached and presented at a bank as of the maturity date.
The part of a security giving entitlement to collect interest or dividends.
The interest rate on a fixed income security, set at issuance. Expressed as a percentage of par.
Old bond payment tickets. Part of a paper bond would be cut, then brought to a transfer agent and paid. Today, slang for the interest rate on a bond.
The annual rate of interest on a bond's face value that the bond's issuer promises to pay the bondholder.
The part of a bond certificate that denotes the amount of interest due, and on what date and where payment will be made. In the past, bondholders presented actual coupons to receive the interest due. Book-entry systems have made coupons obsolete, but “coupon” has become a common expression for interest rate.
The interest rate applied to the face value (‘nominal valueâ€(tm)) of a bond.
The interest rate paid on a bond issue. Quoted in percentage terms. Can be a fixed or floating rate.
The stated interest rate on a bond when it's issued. A $1,000 bond with a coupon of 6% will pay you $60 a year
A coupon represents an interest payment paid at regular intervals by the issuer to investors in interest rate securities. The coupon rate is the interest rate paid to investors during the life of the bond and is set when the issuer first sells the securities into the market. The coupons vary according to the type of interest rate security. A fixed rate bond has a coupon that is fixed for the life of the bond.
A detachable part of a bearer bond. The coupon gives its holder the right to the interest payments that are due on the bond.
The rate of interest payable annually. Where the coupon is blank, it can indicate that the bond can be a 'zero-coupon,' a new issue, or that it is a variable-rate bond. [Back
Periodic interest payments made during the life of bond.
The interest rate on a bond. It's expressed as an annual percentage of the face value. A bond that pays 6 percent interest has a 6 percent coupon.
A detachable receipt attached to a security for payment of all corporate actions. The coupon has to be detached from the security and physically taken to the paying agent – normally the registrar. See Bearer shares NB. Securities (in Bearer form) on issue that still have coupons Royal Dutch Shell Transport and Trading
The stated rate of interest on a bond.
The stated interest rate on a debt security the issuer promises to pay to the holder.
A portion of a bond certificate entitling the holder to an interest payment of a specified amount when clipped and presented at a bank on or after its due date.
A definitive bearer interest instrument associated with a U.S. Treasury bearer security. As in the 31 CFR 358.1.
The interest rate on a bond. On a bearer bond, it refers to the collection of interest by presenting the coupons which are attached to the bond.
The interest rate that the bond issuer agrees to pay a bondholder until the bond comes due. It is expressed as a percentage of the face value of the bond. For example, a bond with a 5 percent coupon will pay $5 per $100 face amount of the bond.
Jargon meaning the income paid out on a bond or fixed-interest security.
A periodic interest payment made to the bondholders during the life of the bond.
Removable label either supplying information or having redeemable value. They may be either pressure sensitive or non-pressure sensitive.
Fixed rate of interest payable on a bond.
the annual rate of interest promised to the buyer of bonds. A 10 percent coupon entitles the holder to receive $10 a year for each $100 invested, for the life of the bond, paid in two half yearly instalments.
The interest payment on a debt instrument, usually annually or semiannually.
(1) On the bearer stocks, the detachable part of the certificate exchangeable for dividends. (2) Denotes the rate of interest on a fixed interest security - a 10 per cent coupon pays interest of 10 per cent a year on the nominal value of the stock.
the semiannual interest payment on a bond.
The interest rate that a bond issuer is obligated to pay the bond holder until the bond matures.
A small certificate, usually cut from a bond, that could be redeemed for interest payments. Coupon bonds are no longer used in the U.S., but a bond's interest rate is also known as its "coupon."
The part of the bearer bond that states the amount of interest payable and the date of payment. Coupons must be detached and presented to the issuer's designated paying agent to receive payment.
Glossary-C The Coupon refers to the actual interest payment made on each bond. If you have a $5,000 bond paying 7 percent interest, you will receive $350 each year, most likely in two $175 payments. The $350 is the coupon. The interest rate of the bond is also referred to as the coupon rate. The name originates from how you used to collect your interest (and still do on some). You'd actually clip a coupon and bring it in to receive your interest. Today, this is often done electronically, with the interest simply deposited in your bank account.
An annual rate of interest that a bond issuer promises to pay the bond holder on the balance of the face value.
The annual interest payment made to a bondholder during the life of a bond. Coupon payments in the U.S. are typically made semi-annually, while Eurobonds pay once per year.
The interest rate paid to the holder of a debt security. Most debt securities have a coupon that is a percentage of the face or principal amount, paid at fixed intervals (often twice a year) until maturity. For example, a $10,000 debt security with a 5% per annum coupon will pay investors $500 a year in payments of $250 every six months. At the maturity date, investors receive the full face value of the security back (in this example $10,000). The coupon rate is set when the issuer first sells the securities into the market.
the regular interest payment during the term of a debt
The interest rate on a security that the issuer promises to pay to the holder until maturity which is expressed as an annual percentage of face value.
The income payable on a corporate bond or gilt.
The periodic interest payment made to the bond holders during the life of the bond.
This part of a bond denotes the amount of interest due, and on what date and where the payment is to be made. Bearer coupons are presented to the issuer's designated paying agent or deposited in a commercial bank for collection. In the case of registered coupons (see "Registered bond"), the interest payment is mailed directly to the registered holder. Coupons are generally payable semiannually.
The rate of interest paid by a fixed-interest bond. A 5% coupon implies that the bond pays 5% interest.
Interest rate due on a bond, which the issuer promises to pay until maturity expressed as an annual percentage of its face value.
An interest payment made by a bond.
The annual interest paid on a bond, usually stated in terms of the rate paid on a bond's face value. For example, a nine percent coupon, $1,000 bond would pay its owner $90 in interest annually up to maturity. (See also Coupon bond, Coupon rate of return.) View LEI Lesson(s) that address this term
Generally, the nominal annual rate of interest of a fixed income security expressed as a percentage of the principal value. This interest is paid to the holder of the security by the borrower. The coupon is generally paid annually, semi-annually or, in some cases quarterly depending on the type of security.
The nominal interest rate charged to the borrower on a promissory note or mortgage
Paper that evidences an issuer's promise to pay interest when due. A coupon is usually attached to the debt security. When the due date arrives, the coupon is detached and submitted for payment. See: Coupon Bond; Coupon Rate; Debt Security
The interest rate on a debt instrument expressed in terms of a percent on an annualized basis that the issuer guarantees to pay the holder until maturity.
The interest rate applied to the value of a Corporate Bond or Gilt.
Interest rate payment on bond.
or Coupon Rate — The stated interest rate for a bond. Most bonds pay a fixed rate of interest that does not change during the life of the bond. Typically, bonds pay interest twice a year.
A certificate attached to a bond, which denotes the interest rate payable.
The rate of interest to be paid on a bond, most often it is paid semi-annually. Refers to the interest payment of par, or face value. Expressed as a percentage of par.
In finance, coupons are "attached" to bonds, either physically, as with old bonds (with a stapler), or electronically. Each coupon represents a predetermined payment promised to the bond-holder in return for his or her loan of money to the bond-issuer. The bond-holder is typically not the original lender, but receives this payment for effectively lending the money.
