short coupon

short coupon definition - business

short coupon

  1. See short bond.
  2. The first interest payment on a newly issued bond that includes less than the usual six months' worth of interest. For example, a bond issued on February 1 with interest payment dates of June 1 and December 1 would make an initial interest payment equal to four months' interest.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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