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.
8 days, the relatively short coupon redemption and postpromotion periods may not have allowed for the observations of "slow" redeemers or "slow" postpurchasers.