The annual interest payment a bond pays to its holder.
Expressed as a percentage of face value (par). A $1,000 face bond with a 5% coupon pays $50 annually (often in two semi-annual installments). Coupon is fixed; yield varies as bond prices fluctuate.
The annual interest payment a bond pays to its holder. Expressed as a percentage of face value (par). A $1,000 face bond with a 5% coupon pays $50 annually (often in two semi-annual installments). Coupon is fixed; yield varies as bond prices fluctuate.
In bonds, Coupon is one of the building blocks investors use to compare opportunities and assess risk. Understanding it helps you read research notes, earnings reports, and market commentary without getting lost in jargon.
Expressed as a percentage of face value (par). A $1,000 face bond with a 5% coupon pays $50 annually (often in two semi-annual installments).
Looking for more financial terms?
Browse Full Glossary →