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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Coupon

Definition:

They're on the back of cereal boxes and at coupons.com en masse.

Oh, coupons also apply to bonds. If you have a bond, the coupon is the money you make from the interest on that bond. A normal vanilla bond pays its interest twice a year, which means that twice a year—for as long as you have the bond (until it expires)—you get cash. 

Example

You have a $500,000, 8% coupon bond. Twice a year, you get $20,000 for your investment. Not bad.