Coupon bond

Coupon bond,

Definition of Coupon bond:

  1. Bond issued with a number of coupons (counterfoils) that must be detached and presented to receive the periodic interest (paid usually twice a year). Coupon bonds are bearer bonds, therefore anyone who presents the coupon is entitled to collect the interest payment.

  2. An investment bond on which interest is paid by presenting coupons.

How to use Coupon bond in a sentence?

  1. The proceeds from selling the low coupon bonds and the strips left over from creating the coupon bond should exceed the amount paid for the high coupon bond.

Meaning of Coupon bond & Coupon bond Definition