Term:
Coupon
Definition:
A slip attached to a bearer bond, which can be detached and exchanged for an interest payment or dividend due at a specific date. Also used to describe the nominal annual rate of interest which a borrower promises to pay the holder of a fixed income security. Colloquially, in the U.S. domestic market, used to describe a U.S. Treasury note or bond.
Domain:
Finance
Source:
World Bank: Glossary of Finance and Debt