coupon

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Coupon

The contractual interest obligation a bond or debenture issuer covenants to pay to its debtholders.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

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.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

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.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
One trend to make mobile and Internet coupons easier for shoppers is the ability to link digital offers to loyalty cards.
The ILC is a keychain attachment, branded with the retailer's logo, which consumers can use either to scan printed coupons or to download Internet coupons. Once the coupons are in the device, the shopper takes it to the store, where it is placed in a docket at checkout.
Hannaford loss-prevention officials quickly learned about the problem and stopped accepting Internet coupons.
Vitamin sales through www.pvsvitamins.com; refills & new prescriptions available to NJ residents only Raley's Refills only; interactive Randalls Food & Drugs Refills only; Internet coupons; affiliated with Peapod for Austin and Dallas/Fort Worth markets only; interactive Rite Aid Corp.
Informational Fruth Pharmacy On-line refills coming soon; Internet coupons; interactive Giant Eagle Interactive; coupons Gresham Drugs On-line shopping indicated, but do not provide the types of products sold H-E-B Foods/Drugs Limited categories of products available Hannaford Bros.
* Limiting the sale of "free product, no purchase required" coupons to no more than two per listing, and limiting home-printed Internet coupons to no more than two per listing.
"U-pons Internet coupons provide our customers with on-line values and a mechanism for our manufacturing partners to support our on-line initiatives."
One of the most passionate groups may be the companies that produce Internet coupons, because several retailers have issued bans on their products as a quick fix.

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