Cum Coupon


DEFINITION of 'Cum Coupon'

A bond status that means the buyer of the bond has the right to receive the current coupon payment on the bond. Cum-coupon bonds require the buyer to pay the seller the accrued interest on the bond, and the buyer is then entitled to the next coupon. In the United States, bonds are always traded cum-coupon although there are a few markets outside of the United States where they are traded ex-coupon.


If an investor is looking to buy a bond they should be aware of the status of the coupon. If the bond is cum-coupon, that investor can be rest assured that the upcoming coupon will be paid to him. If the bond has a gone ex-coupon, the investor will not be receiving the upcoming coupon payment.

  1. Coupon

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

    A debt investment in which an investor loans money to an entity ...
  3. Ex Coupon

    A bond or preferred stock that does not include the interest ...
  4. Accrued Interest

    1. A term used to describe an accrual accounting method when ...
  5. Coupon Bond

    A debt obligation with coupons attached that represent semiannual ...
  6. Clean Price

    The price of a coupon bond not including any accrued interest. ...
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