coupon


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Related to coupon: coupon bond

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 ?
Consumers should be mindful of where they are getting coupons from, and know the basics when it comes to coupon standards.
Coupon Rate Adjustment is based on the reference interest rate plus a fixed spread of 255 bps (2.55%).
WINSTON-SALEM, N.C.--According to the "2018 Inmar Shopper Behavior Study," digital coupons were making a big difference for in-store shopping decisions.
Should Zero Coupon Notes be converted, LabCorp would be required to pay holders in cash for the accreted principal amount of the securities to be converted, with the remaining amount, if any, to be satisfied with shares of Common Stock.
Andrew Coleman, president of Winston-Salem, N.C.-based marketing consultancy Rogue Two, contends that true paperless digital coupon fraud is difficult to measure, due to the "closed-network" nature of most digital platforms.
According to the JICC, failure to transition to the new coupon technology exposes retailers to a number of risks, including processing of expired or fraudulent coupons; inability of customers to use coupons at self-checkout kiosks; increased cashier labor and time to manually process coupons; and reduced profitability of promotions.
REDEMPTION OFTHIS COUPON IS SUBJECT TO PRODUCT AVAILABILITY IN-STORE Valid in England, Wales, Scotland and Northern Ireland only.
* Of those shoppers who do not like or use coupons, the wealthiest claim a lack of time to look as the primary reason why they do not participate.
Average daily visits to Safe-way's coupon page increased by 436%, reaching 42,100.
The third and final coupon we have on offer in this press release offers you the chance to earn yourself some cash!
Compared to other coupon apps, such as Coupon Sherpa and Coupons.com, RedPlum Social Savings has a limited selection with roughly 59 coupons listed.