coupon

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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 ?
para]]Study Provides Insight Into the Spending Power of Coupon Users[[/para]]
It's kind of like a game to use your coupons to the best advantage as possible,'' said Amy McClure of Whittier, a second-generation couponer who has been doing it since high school.
The content of the coupon or the advertising message is specified by the client- manufacturer.
Sales tax expense associated with coupon production costs can also vary, depending on how the coupons are distributed.
By the time they are printed, distributed, taken back, sorted and paid for, coupons cost the manufacturer an average of a dollar apiece to redeem.
7 million American consumers are now using online coupons, representing 25 percent of the U.
Last year the number of coupons in circulation slipped 6 percent, to 292 billion, according to NCH.
The study, conducted in January of 2012, asked Coupons.
No Kidding Coupons features their "One Buck Or Less" Coupon Cart where members explore coupons on hundreds of products in categories such as Beauty, Automotive, Health & Personal Care, Home & Kitchen, Home Improvement, Office Products, Patio, Lawn & Garden, Pet Supplies, Toys & Games, Arts, Crafts & Sewing, Cell Phones & Accessories, and more.
Consumers register their Visa, MasterCard or American Express card through Coupons.