© 2016 Shmoop University, Inc. All rights reserved.

Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.



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. 


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