What is a Coupon Bond?

Bond coupon The bond issuer guarantees the bond interest that is regularly paid to creditors before the bond matures. This interest rate is calculated on an annual basis. Bonds generally include two parts: the amount of the bond and the interest payable on a regular basis. Bond coupons affixed to the bonds, referred to as coupons, are the proof of interest. Bond holders hold coupons to interest payment sites on time, and cut coupons to receive interest payments. In the United States, before the computer and Federal Reserve telecommunications bookkeeping methods appeared, bond certificates issued by companies or local governments were accompanied by small coupon coupons. When the ticket holder went to a local bank or bond issuer When the bank collects the price, the bank will pay the interest in the USD amount indicated on the coupon. ^[1]