short coupon

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.

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.

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.
References in periodicals archive ?
Now 54 and the youngest of 11 siblings, Manuel related that it took one good composer one whole day to finish two pages of texts-the equivalent to two short coupon bond papers.
Although the average repurchase cycle for the test establishment was 5.8 days, the relatively short coupon redemption and postpromotion periods may not have allowed for the observations of "slow" redeemers or "slow" postpurchasers.
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.