coupon


coupon
The interest rate on a debt instrument expressed in terms of a percent on an annualized basis that the issuer guarantees to pay the holder until maturity. Chicago Board of Trade glossary
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coupon, coupon rate
(1) The rate of interest received by the holder of a security. Not necessarily the same as the yield realized by the holder.
See rate.
(2) For pass-through securities, the holder's coupon rate is the gross coupon of the underlying loans less servicing fees and any agency guarantee fees. American Banker Glossary
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The contractual interest obligation a bond or debenture issuer covenants to pay to its debtholders. Bloomberg Financial Dictionary
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The rate of interest payable on a bond. For example a bond with a 10% coupon and a nominal value of £100 will pay annual interest of £10 in total, regardless of the price at which the bond is trading in the market. Dresdner Kleinwort Wasserstein financial glossary
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( i) On bearer stocks, the detachable part of the certificate exchangeable for dividends.
(ii) Denotes the rate of interest on a fixed-interest security. Exchange Handbook Glossary
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The interest rate on a fixed-interest security.
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Generally, the nominal annual rate of interest of a fixed income security expressed as a percentage of the principal value. This interest is paid to the holder of the security by the borrower. The coupon is generally paid annually, semi-annually or, in some cases quarterly depending on the type of security. LIFFE
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This is a regular payment received by the bondholder over the lifetime of the bond. The coupon rate is expressed as a percentage of the face value of the bond. London Stock Exchange Glossary
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Interest paid to the holder of a bond. See Dividend NYSE Euronext Glossary

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coupon cou‧pon [ˈkuːpɒn ǁ -pɑːn] noun
1. [countable] FINANCE a small piece of paper attached to certain types of bond, that you tear off and hand in so as to receive interest:

• The frequency of coupon payments can differ between bonds; for example, some bonds pay coupons quarterly, others pay coupons annually.

2. [singular] FINANCE the rate of interest paid on bonds:

• a new two-year bond with a 10% coupon

• The high coupon is there to compensate high risk.

3. [countable] a printed piece of paper given to customers by the seller of a product, allowing the customer to pay less than usual for the product when they next buy it, or to get a free gift:

• a 20p-off coupon

4. [countable] a printed piece of paper given to people by the government, allowing them to buy a particular product or get something for free, usually during a war:

• ration coupons

• petrol coupons

— see also international reply coupon

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   The interest paid on a bond expressed as a percentage of the face value. If a bond carries a fixed coupon, the interest is paid on an annual or semi-annual basis. The term also describes the detachable certificate entitling the bearer to payment of the interest.
   ► See also Bullet Bond, Bearer Forms (Bearer Shares).

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coupon UK US /ˈkuːpɒn/ noun [C]
COMMERCE a piece of paper or card that customers can use to buy goods and services at a lower price, or to get them free: »

This week shoppers can use discount coupons to get money off gasoline.

cut out/clip a coupon »

Clip this coupon for $10 off your next purchase.

»

money-saving/money-off coupons

(also coupon rate) FINANCE the rate of interest that is paid on a bond: »

The bonds have a coupon of 6.25 per cent.

»

a high-coupon/low-coupon bond

FINANCE a part of a printed bond that can be separated from it when the bond's owner wants to be paid interest by the issuer (= organization from which it was bought): »

The Securities of this series are issuable only in registered form without coupons in denominations of $1,000.

See also INTERNATIONAL REPLY COUPON(Cf. ↑international reply coupon), ZERO COUPON BOND(Cf. ↑zero coupon bond)

Financial and business terms. 2012.

Synonyms:

Look at other dictionaries:

  • coupon — [ kupɔ̃ ] n. m. • v. 1223; de couper 1 ♦ Fin d une pièce d étoffe. Coupons en solde. Pièce d étoffe roulée. 2 ♦ Fin. Feuillet que l on détache d un titre et sur la présentation duquel l établissement émetteur paye les intérêts, les dividendes.… …   Encyclopédie Universelle

  • coupon — cou·pon / kü ˌpän, kyü / n [French, from Old French, piece, from couper to cut]: a statement of due interest to be cut from a debt instrument and esp. a bearer bond when payable and presented for payment; also: the interest rate of a coupon… …   Law dictionary

  • coupon — [ko͞o′pän΄, kyo͞o′pän] n. [Fr, remnant, coupon < couper, to cut: see COUP] 1. a detachable printed statement on a bond, specifying the interest due at a given time: each coupon on a bond is presented for payment at the proper time 2. a… …   English World dictionary

  • Coupon — Cou pon (k?? p?n; F. k?? p?n ), n. [F., fr. couper to cut, cut off. See {Coppice}.] 1. (Com.) A certificate of interest due, printed at the bottom of transferable bonds (state, railroad, etc.), given for a term of years, designed to be cut off… …   The Collaborative International Dictionary of English

  • coupon — COUPON. s. mas. Petit reste d une pièce d étoffe ou de toile. Un coupon de toile de batiste. [b]f♛/b] Il se dit aussi Des papiers portant intérêts, et dont on coupe une partie à chaque échéance …   Dictionnaire de l'Académie Française 1798

  • coupon — 1822, certificate of interest due on a bond (which could be cut from the bond and presented for payment), from Fr. coupon, lit. piece cut off, from couper to cut, from coup a blow (see COUP (Cf. coup)). Meaning widened to discount ticket 1860s by …   Etymology dictionary

  • Coupon — Coupon, Kupon: Die Bezeichnung für »Abschnitt (auf Wertpapieren); Stoffrest« wurde im 18. Jh. aus gleichbed. frz. coupon entlehnt, das zu frz. couper »‹ab›schneiden« gehört …   Das Herkunftswörterbuch

  • coupon — Coupon. s. m. Petite piece de toile fine & claire, Un coupon de toile de baptiste …   Dictionnaire de l'Académie française

  • Coupon — (franz., spr. kupóng, v. couper, schneiden), allgemein: Abschnitt, z. B. Tuchrest, abzutrennender Teil von Einlaßkarten, Fahrscheinen etc.; insbesondere (Zinscoupon, Zinsleiste, Zinsschein) Name der den Staats und andern öffentlichen Papieren,… …   Meyers Großes Konversations-Lexikon

  • Coupon — (frz., spr. kupóng), Abschnitt, von einem Ganzen abzutrennender Zettel als Beleg; Zins C. (Dividendenscheine), die den öffentlichen Schuldscheinen und Aktien in Bogen (Zinsbogen) beigegebenen Quittungen, die zur Erhebung der Zinsen und Dividenden …   Kleines Konversations-Lexikon

  • Coupon — Coupon, Kupo, Rechnungsmünze auf den Sundainseln = 5 Sgr. 21/4 Pf. = 15 kr. C. M …   Herders Conversations-Lexikon