coupon


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Related to coupon: coupon bond

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 ?
Flash Sale 5 - Timing: 5PM-6PM CST; Coupon Code: FRIFLASH5
They're hoping they'll catch that consumer shopping who might try something new because they saw a coupon.
After locating an electronic coupon, shoppers simply print it out and bring it to the store for redemption.
The Catalina Performance Agreement calls for the payment by the manufacturer to Catalina of a base fee, plus a fee for each coupon or advertising message over a certain level.
Sales tax collection responsibility on coupon redemptions depends, in most states, on who issues the coupon.
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.
3 for iOS allows shoppers to easily save coupons from leading national retailers directly to Passbook.
Through this report, we see clearly that heavy digital coupon users are not only shopping more and spending more, they are also stocking up more often, " said Neal Heffernan, Senior Vice President, Shopper & Retail Strategy, GfK.
The Website permits consumers in all 50 states to print out coupons valid nationwide for companies such as Lenscrafters and Olan Mills portrait studios.
According to NCH, which just put together an analysis of the relationship between coupon promotion and the state of the U.
To examine these questions, the JICC, whose members include the Grocery Manufacturers of America (GMA), Food Distributors International, Food Marketing Institute (FMI), National Grocers Association, Food Industry Association Executives, Association of Sales and Marketing Companies, Association of Coupon Professionals and the Uniform Code Council, developed the recently released report, which contains a set of guidelines for improving the couponing process.
com, the leader in digital coupons, today announced the launch of its Cyber Monday Coupon Code Scavenger Hunt in which consumers compete by using clues posted on participating blogs to find specific coupon codes on Coupons.