Definition of «bond coupons»

Bond coupons refer to the periodic interest payments that bondholders receive for investing in bonds. These payments are usually made every six months and are based on a fixed interest rate. It is called a coupon because in the past, bondholders would receive certificates or coupons that they could exchange for interest payments.

Sentences with «bond coupons»

  • Bonds fall in price when interest rates rise, because investors are able to invest in new bonds with similar features that pay the higher bond coupon rates. (investopedia.com)
  • The impact of higher rates on the value of future dividends is similar to the impact on the value of future bond coupon payments. (reit.com)
  • If you can manage to purchase enough bond coupons, you could create a steady stream of passive income. (greatpassiveincomeideas.com)
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