Weighted Average Coupon - WAC

See: WACC.

A coupon is not the 15 cents off a can o' beans thing in the newspaper. A coupon here refers to the interest rate payment done semi-annually from a bond. So if a bond's coupon is 5% then, per grand borrowed, it pays 50 bucks a year.

If you have a portfolio of these coupons, some paying 40 bucks, others paying 65 bucks, others paying 82.50 a year, you'll add 'em up, weight them by dollar amounts, and that'll give you a WACC. And you can take that to the bank.