Definition of coupon

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TeachMeFinance.com - explain coupon



coupon -- (1) a tab attached to a bond , which can be torn off and presented to collect an interest payment, usually semiannually. (2) a percentage of a bond's face value, which is the annual rate of return received by the bondholder.

historic definition...

Coupon -- The obligation for interest on a bond that is called a coupon is a printed part of the bond attached in ticket form so that it may be cut off when it becomes due. A coupon may be sold or may be deposited in a bank the same as a check.



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Mark McCracken

Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English".


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