Coupon Bond

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DEFINITION of 'Coupon Bond'

A debt obligation with coupons attached that represent semiannual interest payments. Also known as a "bearer bond."

INVESTOPEDIA EXPLAINS 'Coupon Bond'

No record of the purchaser is kept by the issuer, and the purchaser's name is not printed on the certificate.

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RELATED FAQS
  1. How does the money from the interest on my bond get to me?

    When you buy a regular coupon bond, you are entitled to a coupon, which is typically paid at regular intervals, and the face ... Read Full Answer >>
  2. 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 ... Read Full Answer >>
  3. What is the relationship between the current yield and risk?

    The general relationship between current yield and risk is that they increase in correlation to one another. A higher current ... Read Full Answer >>
  4. What is a 'busted' convertible bond?

    In finance, a convertible bond represents a hybrid security that offers debt and equity features and risks. While a convertible ... Read Full Answer >>
  5. Who or what is backing municipal bonds?

    Municipal bonds are backed by dedicated taxes or revenue sources related to specific projects, or by the full faith and credit ... Read Full Answer >>
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    The basic differences between the debt and equity markets include the type of financial interest they represent, the way ... Read Full Answer >>
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