Meaning of coupon bond in English:

coupon bond


  • An investment bond on which interest is paid by coupons.

    ‘The proceeds from selling the low coupon bonds and the strips left over from creating the coupon bond should exceed the amount paid for the high coupon bond.’
    • ‘To compute the price of a coupon bond in terms of its stripped components, the prices of each payment were estimated using the term structure of observed bid yields for strips.’
    • ‘Efficient capital markets imply that the price of a coupon bond should not differ from the value of a package of cash flow components that replicates the coupon bond.’
    • ‘This portfolio anticipates a volatile market environment with price swings in every asset class except the short-term zero coupon bond fund.’
    • ‘Our sample includes only pure discount and coupon bonds whose prices are not perturbed by any optionalities such as prepayment options.’