- The definition of a coupon is a voucher or code entitling you to a product or a special deal, or a part of a bond that you can detach and send in to get interest.
- A paper entitling you to 10 percent off of a meal in a restaurant is an example of a coupon.
- The part of a savings bond that you can detach and use to redeem interest payments is an example of a coupon.
- a detachable printed statement on a bond, specifying the interest due at a given time: each coupon on a bond is presented for payment at the proper time
- a certificate or ticket entitling the holder to a specified right, as redemption for cash or gifts, reduced purchase price, etc.
- a part of a printed advertisement as for use in ordering goods, samples, or literature
Origin of couponFrench remnant, coupon ; from couper, to cut: see coup
- 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 couponFrench, 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, became colp. 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.
coupon - Investment & Finance Definition
The interest payment that must be made on a note or bond until it matures. For example, a note with a 7 percent interest rate pays $70 annually on a $1,000 bond, which typically would be split into semiannual payments. The $70 is the coupon. The term coupon reflects the portion of a bond that the bond holder separates and presents to the bond issuer in order to obtain the interest payment the bearer is entitled to. This type of bond is called a bearer bond. In contrast, the name and address of the holder of a registered bond are known to the bond issuer.