Level-coupon bond(redirected from Level-Coupon Bonds)
A bond with coupon payments that are constant throughout the life of the bond. That is, a level-coupon bond is not indexed to inflation or anything else; it entitles the bearer to receive a percentage of the bond's principal at certain intervals until maturity. Unlike zero-coupon bonds, level-coupon bonds are sold at or close to par value because the coupons carry a stream of income that zero-coupon bonds lack. Level-coupon bonds are the most basic form of bond.