coupon

(redirected from Coupons)
Also found in: Dictionary, Thesaurus, Legal, Acronyms, Encyclopedia.

Coupon

The contractual interest obligation a bond or debenture issuer covenants to pay to its debtholders.

Coupon

The interest paid on a bond. That is, the coupon is the amount that the issuer must pay to the holder of each bond in exchange for investing in that bond. Coupons usually are paid every six months. They are called coupons because formerly they were represented by physical coupons on the bond certificate that had to be clipped and returned to the issuer to receive the interest payment. With the advent of computers, this has become much less common.

coupon

1. 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.
2. 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.

Coupon.

Originally, bonds were issued with coupons, which you clipped and presented to the issuer or the issuer's agent -- typically a bank or brokerage firm -- to receive interest payments.

Bonds with coupons are also known as bearer bonds because the bearer of the coupon is entitled to the interest.

Although most new bonds are electronically registered rather than issued in certificate form, the term coupon has stuck as a synonym for interest in phrases like the coupon rate.

When interest accumulates rather than being paid during the bond's term, the bond is known as a zero coupon.

coupon

  1. a voucher used as a means of promoting the sale of a product which is offered to buyers of the product to be redeemed for cash, gifts or other goods. Coupons can be mailed direct to households, printed in newspapers and magazines, incorporated into the packaging of the product, or distributed in a shop. See SALES PROMOTION.
  2. a detachable slip which forms part of a SHARE CERTIFICATE or BOND and which is presented in order to claim the owner's entitlement to dividends or interest paid out on the security.

coupon

  1. 1a document that shows proof of legal ownership of a FINANCIAL SECURITY and entitlement to payments thereon; for example, a SHARE certificate or BEARER BOND certificate.
  2. a means of promoting the sale of a product by offering buyers of the product coupons that can be redeemed for cash, gifts or other goods.
References in periodicals archive ?
Evading Print Limits: There has been a recent increase in the number of individuals selling multiple sets of PAH coupons on social media.
7% of all CPG coupons were distributed in 2010 via the freestanding insert (FS1).
Online media pitch droids could custom-create coupons fitted to the reactions of particular online customers.
Stacking means combining coupons from several sources, and doubling is when a store automatically doubles the value of a coupon, usually up to a certain maximum.
Shoppers are finding electronic coupons far more convenient," says Jeff Weitzman, president and COO of Coupons, Inc.
Sales tax expense associated with coupon production costs can also vary, depending on how the coupons are distributed.
Table 1 The Effects of Cents-Off Coupons on Price Perception Independent variables Parameter estimate Probability > T Mere use .
Thus, an investment manager may purchase a 10-year, 10-percent coupon bond in order to meet an obligation in 10 years only to find that soon after the security is purchased, market rates decline and the return earned from the reinvestment of interest payments is considerably less than originally anticipated.
Once registration is complete, members will have access to the Savings Club, and will see Club coupons marked with a red Savings Club icon in the coupon gallery.
Technology will play a key role in developing better ways both to deliver coupons and select which ones are distributed to which consumers.
com This site posts 30 coupons every week, which can also be delivered via e-mail.