TradeAlmanac
Sign in

Coupon

The regular payment made to a bondholder under the terms of the issue.

How to read the number

Coupons come in fixed, variable and floating forms — the last tied to a rate or to inflation.

When the metric lies

A variable coupon means only the next one is known: the issuer sets the rest later, and they can come in markedly lower.

Also known as: coupon

Related terms