Fixed Coupon

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Fixed Coupon

An interest rate on a bond that does not change over the life of the bond. If one purchases a bond with a fixed coupon of 10%, then 10% is calculated over the principal balance each time the interest compounds. A fixed coupon differs from a variable coupon, which may change from time to time, at least within certain parameters.
References in periodicals archive ?
The Treasury held auctions to sell 357-day zero-coupon TRY denominated Treasury bill, 7-year TRY denominated government bond with semiannually floating coupons and 10-year TRY denominated government bond with semiannually fixed coupons.
Each new tax exempt bond issue is posted to the firm's Web site so investors can see the principal amounts offered, the fixed coupons, the dollar prices and the reoffering yields.
The bond, which carries floating and fixed coupons, is due on 23 June 2013 and 23 September 2016, respectively, the agency said.
The redemption date for the government bonds with semiannually fixed coupons is April 2020 and the maturity duration is 10 years.
The bond will be sold in nine tranches, which carry both floating and fixed coupons and mature on May 19 of 2013, 2014, 2015, 2016, 2017 and 2018.