An annuity is an investment in which a person receives a fixed sum of money annually. Coupon payments received by a bondholder are an example of an ordinary annuity because the amount of the payments is fixed, and the payments occur at the same time every period.
For example, consider an investor who purchases a 20year government bond for $10,000. The bond has a coupon rate of 10%, and the investor receives the coupon payment at the end of each year. For the entire 20 years the investor holds the bond, he receives a fixed payment of $1,000 each December. At the end of the 20 years, when the bond matures, he turns in the bond and receives back his $10,000 principal payment.
Because his coupon payments are fixed and occur at the same time at the end of every year, they are an example of an ordinary annuity. While the definition of an annuity is a series of fixed yearly payments, this money can be distributed to the investor more frequently than once per year if the terms of the investment so stipulate. Some annuities, including bond coupon payments, are paid out semiannually, quarterly or even as frequently as monthly. Returning to the bond example above, if its coupon payments were distributed quarterly instead of yearly, the investor, then, receives $250, or 2.5% percent of the principal amount, at the end of each quarter instead of $1,000, or 10% of the principal amount, at the end of each year.

Why do bond coupon rates vary so greatly?
Learn about the two major reasons that cause bond coupon rates to vary so dramatically and what role coupons play in the ... Read Answer >> 
When is a bond's coupon rate and yield to maturity the same?
Find out when a bond's yield to maturity is equal to its coupon rate, and learn about the components of bonds and how they ... Read Answer >> 
What is the most common solvency ratios used in fundamental analysis?
Learn about the difference between a bond's coupon rate and its yield rate, how the coupon rate influences market price and ... Read Answer >>

Financial Advisor
Present Value Of Different Bond Types Using Excel
To determine the value of a bond today  for a fixed principal (par value) to be repaid in the future  we can use an Excel spreadsheet. 
Investing
Comparing Yield To Maturity And The Coupon Rate
Investors base investing decisions and strategies on yield to maturity more so than coupon rates. 
Retirement
Calculating the Present and Future Value of Annuities
Here's everything you need to account for when calculating the present and future value of annuities. 
Personal Finance
Coupon Shopping: Clip Your Way To Savings
Use coupons strategically to score big savings on everyday purchases. 
Retirement
How a Fixed Annuity Works After Retirement
These popular investments can provide a steady stream of income during your retirement years. Here are the details. 
Financial Advisor
Advising FAs: Explaining Annuities to a Client
Conceptually speaking, annuities can be thought of as a reverse form of life insurance. 
Retirement
Buying Annuities in a Low Interest Rate World
Learn if buying an annuity makes sense in a low interest rate environment. Also discover the different types of annuities and how interest rates affect them. 
Personal Finance
6 Tricks To Make Coupons Work For You
Use these strategies to counteract the stores' and manufacturers' coupon tactics and come out ahead.

Coupon
A coupon is the annual interest rate paid on a bond, expressed ... 
Bond Valuation
Bond valuation is a technique for determining the theoretical ... 
Annuity Due
An annuity whose payment is to be made immediately, rather than ... 
Bunny Bond
A type of bond that offers investors the option to reinvest coupon ... 
ZeroCoupon Bond
A zerocoupon bond is a debt security that doesn't pay interest ... 
Annuity Consideration
The money that an individual pays to an insurance company in ...