"Fixed coupon" refers to a predetermined interest rate on a bond or loan that remains constant throughout its duration. It means that the borrower will pay a fixed amount of interest periodically, regardless of changes in market interest rates.
Sentences with «fixed coupon»
Instead of paying the shareholders fixed coupons and principal, it pays out the cash flows from the pool of mortgages. (teenanalyst.com)
In this case, the yield has now risen to 4 % per year (the $ 3 fixed coupon divided by the new lower $ 75 price). (money.stackexchange.com)
As noted above, most agency bonds pay a fixed rate of interest or fixed coupon rate semi-annually. (investinginbonds.com)