coupon bond
Học thuậtThân thiện
A financial advisor shows a client a coupon bond with its detachable interest coupons.
Definition
- Noun:
- A type of debt security: A coupon bond is a bond issued with detachable coupons that must be presented to the issuer or a paying agent to receive periodic interest payments.
- Historical financial instrument: It refers to a traditional, physical bond certificate where ownership of the coupon entitles the holder to an interest payment, distinct from registered or book-entry bonds.
Usage Examples
- Noun:
- The investor clipped the coupons from the coupon bond and mailed them to receive the semi-annual interest.
- Before the digital era, coupon bonds were a common way for corporations and governments to raise capital.
Advanced Usage
- "Detachable coupon": Refers to the individual slips attached to the bond certificate, each representing a single interest payment.
- Each detachable coupon on the bond was marked with a specific payment date.
- "Bearer instrument": Coupon bonds are often bearer instruments, meaning the physical holder of the coupon is presumed to be the owner entitled to payment.
- Because it was a coupon bond, possession of the coupon was sufficient to claim the interest, much like cash.
Variants and Related Words
- Bearer bond: A bond that is payable to the person possessing it, often issued with coupons. A coupon bond is typically a type of bearer bond.
- Registered bond: A bond whose ownership is recorded by the issuer, contrasting with a bearer/coupon bond where physical possession is key.
- Zero-coupon bond: A bond that pays no periodic interest but is issued at a deep discount, providing profit at maturity. This is a distinct type of bond without coupons.
Synonyms
- Bearer bond (when referring to its negotiable, unregistered nature).
- Interest coupon bond.
Related Phrases
- "To clip a coupon": Literally, to cut off a coupon from the bond for submission; figuratively, to receive investment income with minimal effort.
- In the past, retirees relied on clipping coupons from their bonds for income.
- "Coupon payment date": The specific date on which an interest payment is due, as printed on the coupon.
- The next coupon payment date for the bond is June 30th.
A financial advisor shows a client a coupon bond with its detachable interest coupons.
Noun
- a bond issued with detachable coupons that must be presented to the issuer for interest payments