Bonds

The Basics

What is a “coupon payment”?

When a bond issuer pays the bond buyer interest periodically on a bond investment during its term, it is called a coupon payment. For example, the issuer of a $10,000 bond paying 8% would send a coupon payment of $400 twice a year to the bond investor. When the bond matures, in addition to these semi-annual payments, the bond investor will receive the full face value of the bond.



Close

This is a web preview of the "The Handy Investing Answer Book" app. Many features only work on your mobile device. If you like what you see, we hope you will consider buying. Get the App