A coupon is a piece of printed paper that allows you to pay less than usual for a product or get it for free. With the voucher, you get a free ticket. A coupon is a certificate or voucher that allows you to buy something at a reduced price. When you give your voucher to the cashier, the cashier will subtract an amount from the total amount of your bill.
It is also known as coupon rate, coupon percentage rate, and nominal return. Today, the vast majority of investors and issuers prefer to keep electronic records on bond ownership. Even so, the term coupon has survived to describe the nominal yield of a bond. All content on this website, including the dictionary, thesaurus, literature, geography, and other reference data, is for informational purposes only.
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Vouchersare usually referred to in terms of the type of the coupon (the sum of the coupons paid in a year divided by the face value of the bond in question). These examples have been compiled programmatically from several online sources to illustrate the current use of the word “coupon”. Because bonds can trade before maturity, causing their market value to fluctuate, the current yield (often referred to simply as yield) often differs from the bond's coupon or nominal yield.
However, the interest rate on the coupon does not change, since it is a function of annual payments and nominal value, both constant. A coupon or payment coupon is the annual interest rate that is paid on a bond, expressed as a percentage of the nominal value and that is paid from the date of issue to its maturity. A restaurant voucher can give you a free drink when you buy dinner, and a supermarket voucher will save you five dollars on your dog's favorite kibble.