Coupon
Definition
The periodic interest payment on a bond, expressed as a percentage of face value. Set at issuance; doesn't change as bond price moves.
Example
A $1,000 bond with a 5% coupon pays $50 per year until maturity.
The periodic interest payment on a bond, expressed as a percentage of face value. Set at issuance; doesn't change as bond price moves.
A $1,000 bond with a 5% coupon pays $50 per year until maturity.