coupon

1. The annual interest paid on a debt security. A coupon is usually stated in terms of the rate paid on a bond's face value. For example, a 6% coupon, $1,000 principal amount bond would pay its owner $60 in interest annually. A coupon is set at the time a security is issued and, for most bonds, stays the same until maturity.
2. The detachable part of a coupon bond that must be presented for payment every six months in order to receive interest. See also clip, coupon clipping 1.
3. A cents-off voucher in a newspaper or magazine that can be detached and presented to a merchant for a price reduction when buying the advertised item. See also coupon clipping 2.