Coupon
Definition of 'Coupon'The interest rate stated on a bond when it's issued. The coupon is typically paid semiannually.This is also referred to as the "coupon rate" or "coupon percent rate." |
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Investopedia explains 'Coupon'For example, a $1,000 bond with a coupon of 7% will pay $70 a year.It is called a "coupon" because some bonds literally have coupons attached to them. Holders receive interest by stripping off the coupons and redeeming them. This is less common today as more records are kept electronically. |
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How does an investor make money on bonds?
Bonds are part of the family of investments known as fixed-income securities. These securities are debt obligations, meaning one party is borrowing money from another party who expects to be ... -
If I buy a $1,000 bond with a coupon of 10% and a maturity in 10 years, will I receive $100 each year regardless of what the yield is?
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If different bond markets use different day-count conventions, how do I know which one is used in any particular market?
A day-count convention is a system used in the bond markets to determine the number of days between two coupon dates. This system is important to traders of various bonds because it affects how ... -
Are high-yield bonds better investments than low-yield bonds?
Most bonds typically make periodic payments, known as coupon payments, to the bondholder. A bond's indenture, which will be known when the purchaser buys the bond, will specify the coupon payments ... -
What is a debt/equity swap?
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Can a church issue a bond?
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What is the difference between a zero-coupon bond and a regular bond?
The difference between a zero-coupon bond and a regular bond is that a zero-coupon bond does not pay coupons, or interest payments, to the bondholder while a typical bond does make these interest ...
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