Why Is It Called A Coupon?
The origin of the term "coupon" is that bonds were historically issued in the form of bearer certificates. Physical possession of the certificate was (deemed) proof of ownership. Several coupons, one for each scheduled interest payment, were printed on the certificate.
Definition of coupon 1 : a statement of due interest to be cut from a bearer bond when payable and presented for payment also : the interest rate of a coupon. 2 : a small piece of paper that allows one to get a service or product for free or at a lower price: such as.
Coupon Definition & Meaning - Merriam-Webster
What is a coupon in business terms?
What is a coupon? A coupon in the financial world is defined as the annual interest rate paid on a bond that is expressed as a percentage of its face value. This also can be referred to as a bond's coupon rate, coupon percentage rate or nominal yield.
Coupon Definition | Bankrate.com
What is the meaning of coupon in marketing?
In marketing, a coupon is a ticket or document that can be redeemed for a financial discount or rebate when purchasing a product.
Coupon - Wikipedia
Who pays the coupon on a bond?
The buyer compensates you for this portion of the coupon interest, which generally is handled by adding the amount to the contract price of the bond. Bonds that don't make regular interest payments are called zero-coupon bonds – zeros, for short.
Basics Of Bonds - Maturity, Coupons And Yield - InCharge Debt Solutions