Short Coupon

Short coupon

A bond payment covering less than six-months' interest, because the original issue date is less than six months from the first scheduled interest payment. A bond with a short time to maturity, usually two years or less.

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short coupon

1. See short bond.

2. The first interest payment on a newly issued bond that includes less than the usual six months' worth of interest. For example, a bond issued on February 1 with interest payment dates of June 1 and December 1 would make an initial interest payment equal to four months' interest.

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Short Coupon

1. A bond with a short maturity, often defined as two years or less.

2. The first coupon payment on a bond that includes less than six months' worth of interest. For example, if a company issues a bond on May 1, with coupon payments due on June 15 and December 15, the first payment will only include a few weeks' worth of interest.