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. Chicago Board of Trade glossary
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coupon, coupon rate
(1) The rate of interest received by the holder of a security. Not necessarily the same as the yield realized by the holder.
See rate.
(2) For pass-through securities, the holder's coupon rate is the gross coupon of the underlying loans less servicing fees and any agency guarantee fees. American Banker Glossary
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The contractual interest obligation a bond or debenture issuer covenants to pay to its debtholders. Bloomberg Financial Dictionary
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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. Dresdner Kleinwort Wasserstein financial glossary
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( i) On bearer stocks, the detachable part of the certificate exchangeable for dividends.
(ii) Denotes the rate of interest on a fixed-interest security. Exchange Handbook Glossary
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The interest rate on a fixed-interest security.
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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. LIFFE
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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. London Stock Exchange Glossary
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Interest paid to the holder of a bond. See Dividend NYSE Euronext Glossary
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coupon cou‧pon [ˈkuːpɒn ǁ -pɑːn] noun
1. [countable] FINANCE a small piece of paper attached to certain types of bond, that you tear off and hand in so as to receive interest:
• The frequency of coupon payments can differ between bonds; for example, some bonds pay coupons quarterly, others pay coupons annually.
• a new two-year bond with a 10% coupon
• The high coupon is there to compensate high risk.
3. [countable] a printed piece of paper given to customers by the seller of a product, allowing the customer to pay less than usual for the product when they next buy it, or to get a free gift:
• a 20p-off coupon
4. [countable] a printed piece of paper given to people by the government, allowing them to buy a particular product or get something for free, usually during a war:
• ration coupons
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The interest paid on a bond expressed as a percentage of the face value. If a bond carries a fixed coupon, the interest is paid on an annual or semi-annual basis. The term also describes the detachable certificate entitling the bearer to payment of the interest.
► See also Bullet Bond, Bearer Forms (Bearer Shares).
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coupon UK US /ˈkuːpɒn/ noun [C]
► COMMERCE a piece of paper or card that customers can use to buy goods and services at a lower price, or to get them free: »
This week shoppers can use discount coupons to get money off gasoline.
cut out/clip a coupon »Clip this coupon for $10 off your next purchase.
»money-saving/money-off coupons
► (also coupon rate) FINANCE the rate of interest that is paid on a bond: »
The bonds have a coupon of 6.25 per cent.
»a high-coupon/low-coupon bond
► FINANCE a part of a printed bond that can be separated from it when the bond's owner wants to be paid interest by the issuer (= organization from which it was bought): »
The Securities of this series are issuable only in registered form without coupons in denominations of $1,000.
→ See also INTERNATIONAL REPLY COUPON(Cf. ↑international reply coupon), ZERO COUPON BOND(Cf. ↑zero coupon bond)
Financial and business terms. 2012.