Over 700 finance terms, Shmooped to perfection.
They're on the back of cereal boxes and today found at coupons.com en masse. You fight with a scissors to clip them out and mail them in - those who bother to make that effort save money. Coupons also apply to bonds. A normal vanilla bond pays its interest twice a year. A $500,000 , 8% coupon bond pays $20,000 twice a year.