What is coupon?Coupon
The interest paid regularly to bondholders based on the coupon rate.
Learn “coupon” in an animated lesson
- Bonds & Fixed IncomeWhat Is a Bond?
Buying a bond = lending money to a government or company in exchange for regular interest and your principal back at maturity.
- Bonds & Fixed IncomeYield to Maturity (YTM)
Buy at today's price and hold to maturity: what's your annual return really? YTM counts both the coupons and the price difference.
Related terms
See how “coupon” works for yourself with an animation you can drag and play.
Go to “What Is a Bond?”