Coupon Pass


DEFINITION of 'Coupon Pass'

The purchase of treasury notes or bonds from dealers, by the Federal Reserve.


The "coupon" refers to the coupons which are the main difference between T-notes and T-bills. The "pass" comes from when the Federal Reserve buys T-bills from dealers thus passing the bill.

  1. Coupon

    The annual interest rate paid on a bond, expressed as a percentage ...
  2. Coupon Stripping

    The separation of a bond's periodic interest payments from its ...
  3. Range Accrual

    A form of interest accrual in which the coupon rate is only earned ...
  4. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with ...
  5. Treasury Bill - T-Bill

    A short-term debt obligation backed by the U.S. government with ...
  6. Treasury Note

    A marketable U.S. government debt security with a fixed interest ...
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