Coupon Bond (Noun)
Meaning
A bond issued with detachable coupons that must be presented to the issuer for interest payments.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The investment company chose a coupon bond to provide regular income to its shareholders in the form of interest payments.
- Coupon bonds are often considered more secure than other types of bonds because they have a regular payment schedule.
- The detachable coupons on the coupon bond can be traded independently, providing investors with options for managing their interest payments.
- Investors looking for a low-risk investment option often consider buying coupon bonds from reputable issuers.
- Banks use coupon bonds to issue debt on a large scale, allowing them to raise capital for business expansion.