- A code or detachable part of a ticket, card, or advertisement that entitles the holder to a certain benefit, such as a cash refund or a gift.
a. A periodic interest payment due to the holder of a bond.
b. The interest rate of a bond that pays a coupon.
c. One of a set of small certificates that may be detached from a bond certificate and redeemed for interest payments.
Origin of coupon
French piece cut off, remnant, coupon (for interest) from
Old French colpon piece cut off from colper to cut from colp blow
; see coup
. Word History:
A Roman might have had difficulty predicting what would become of the Latin word colaphus,
which meant “a blow with the fist.” As the variety of Latin spoken in the Roman province of Gaul developed into Old French, the Late Latin word colpus,
derived from colaphus,
Old French colp
subsequently developed into modern French coup,
with the same sense. Coup
has had a rich development in French, gaining numerous senses and forming part of numerous phrases, such as coup d'état.
Old French colp
also gave rise to the verb colper
(or in its modern French spelling, couper),
“to divide with a blow or stroke, cut.” Colper
yielded the word colpon,
“a portion that is cut off.” Old French colpon
eventually developed into modern French coupon
and came to refer to a certificate that was detachable from a principal certificate. The detachable certificate could be exchanged for interest or dividend payments by the holder of the principal certificate. Coupon
is first recorded in English in 1822 with this sense and then came to apply to forms or tickets, detachable or otherwise, that could be exchanged for various benefits or used to request information.
- (finance) Any interest payment made or due on a bond, debenture or similar (no longer by a physical coupon).
- A section of a ticket, showing the holder to be entitled to some specified accommodation or service, as to a passage over a designated line of travel, a particular seat in a theater, a discount, etc.
- (Scotland) The face.
From French coupon, from "couper," to cut.