Series 79: Coupon

Taken from our Series 79 Top-off Online Guide

Coupon

Most bonds pay a stated annual interest rate based on the bond’s par value. (This characteristic is, of course, what makes a bond a fixed-income security.) In the bond world, the interest rate is known as the coupon. This quaint term is a reference to the largely obsolete practice of attaching small coupons to bonds. Eac

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