Coupon

Interest payment made on a bond.

REMARKS

A coupon is the stated interest rate for a bond. Most bonds have a fixed coupon that does not change during the life of the bond. Most bonds have two coupon payments per year. For example, a bond with a 5.0% coupon will pay $25 twice per year, for total interest of $50 which is 5.0% of the face value of the bond (almost all bonds have a face value of $1,000).