coupon bond


An unregistered, negotiable bond on which interest and principal are payable to the holder, regardless of whom it was originally issued to. The coupons are attached to the bond, and each coupon represents a single interest payment. The holder submits a coupon, usually semi-annually, to the issuer or paying agent to receive payment. Coupon bonds are being phased out in favor of registered bonds. also called bearer bond.

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The coupon bond would pay two hundred dollars every month for the next two years for their investment in the company.

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I learned that a coupon bond was unregistered and negotiable which made me even more interested in it and how it worked.

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In my position as a financial advisor, I always recommend against the purchase of coupon bonds in favor of registered (bearer) bonds.

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