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What's the meaning of Coupon Payment?

帮考网校2020-10-12 16:03:58
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Coupon payment refers to the interest payment made by a bond issuer to its bondholders. It is a fixed amount of money paid periodically, usually semi-annually or annually, to the bondholder based on the bond's face value and coupon rate. The coupon rate is the interest rate stated on the bond at the time of issuance, and it remains fixed over the bond's life. Coupon payments are a way for bond issuers to compensate bondholders for lending them money.
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