short coupon

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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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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

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.
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.
References in periodicals archive ?
Supply is heavy this week with about $322 B in bills and short coupons on tap, with $78 B in 3- and 6-month bills today, and $40 B in 2-year notes and $26 B in 52-week bills Tuesday.