Cupon payments

By:
Updated: Aug 20, 2021

Annual interest paid on a bond, usually in semi-annual tranches. Cupon payments are expressed as a percentage of the face value of abond. For example, if one holds a bond worth $100 000 at 5% interest, the bondholder will receive $5 000 in cupon payments per year (or, more strictly $2 500 every six months) until the bond matures or the bond is sold.

Reference: www.thefreedictionary.com



Sources & references
Risk disclaimer
James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.