| coupon 1) One of several dated slips attached to a bond, which must be presented to the agents of the issuer or the company to obtain an interest payment or dividend (see also coupon security). They are usually used with bearer bonds; the coupon yield is the yield provided by a bearer bond. 2) The rate of interest paid by a fixed-interest bond. The annual payment is a percentage of the bond's nominal value. 3) A general name for bonds and notes on US Treasury Markets. 4) A fixed-rate payment on an interest or currency swap. |