Stock Market Investors » Glossary of Stock Terms » What is a Coupon?

What is a Coupon?

Initially bonds were issued with a book of coupons. When the investor purchases a bond, s/he gets such a book and is required to send the coupons in order to get the interest that has accumulated over the bond. So, a coupon represents the interest that is paid on a bond. Many people still refer to bond investors as coupon clippers.

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