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 ?
Attendees will gain an abundance of actionable "takeaways" that will broaden their horizons while maximizing their coupon programs' effectiveness and efficiency.
Shoplifting newspapers to get the coupons: Consumers stealing newspapers to get the weekly coupons for free.
* 39% bought a brand they otherwise would not have normally purchased because of a coupon, and 18% switched back to another brand they had purchased previously because of a coupon.
"The author is apparently offering to sell PAH coupons in .pdf format with a 24- to 48-hour turnaround time," he explains.
Both new features are the drugstore chains latest enhancements to its paperless coupon offering, making it faster and easier for customers to find and redeem the latest promotions and deals.
The third and final coupon we have on offer in this press release offers you the chance to earn yourself some cash!
Alexey Andriyanenko adds: "Mobile couponing also does not rely upon the retailer to authorise the coupon, so human error is eliminated.
This coupon is not valid with any other promotional discounts or for special events.
It can be debated whether or not consumers save money overall with coupons. But there's no argument that a certain segment of consumers--apparently around 20 percent of JCP's old customers--rely on coupons to spark them to shop and actually make purchases.
Supermarkets of Wellesley have all mailed out coupons in recent months for free merchandise.
Here's how Clip-free Coupons work: Consumers visit redplum.com and click to join Clip-free simply by providing their name, e-mail address and Zip code.
If we stick to reasonable couponing--following guidelines and obtaining inserts only from the copies purchased--we can all ensure that the coupons will keep coming.