// definition
Bond coupon
Contractual interest payment
freshreviewed 0 days ago
Short definition
An interest payment specified by a bond’s terms. For a fixed-rate bond, the payment depends on face value and the contractual coupon rate, with the stipulated frequency. The buyer’s yield also depends on the purchase price and other cash flows; a secondary-market sale does not alter the issuer’s coupon.
risk atlas
Knowledge map
Intuition
The contract sets payments; the purchase price changes the yield.